“ | THE REX ~ CONTEMPORARY WORLD Prince Kennex Reguyal Aldama GEC SeriesDEFINING GLOBALIZATION ~ nat stvdly Wecause we Abe eafrenenare it Introduction Much has changed since time immemorial. Human beings have enc red many changes over the last century especially in the Goal ee and Cecil st) Of these changes, one can say that globalization S vary Important change if not, the “most important” (Bauman}2003)) The reality and omnipresence of globalization makes us see ourselves as part of what we refer to as the “global age” (Albrow, 1996). The Internet, for example, allows a person fr Philippines to know what is happening to the rest of the world si oh browsing Cong the mass media also“allows for connectionsjamong Reno stor people, communities, and countries all over the globe. So what is globalization? This question is probably an easy one to answer. However, many scholars gave and tried to formulate its definitions. This resulted in different, sometimes contradicting views about the concept. It cannot be contained within a specific time frame, all people, and all situations (Al*Rhodan, 2006). Aside from this, globalization encompasses a multitude of processes that involves the econom) onomy, political systems, and culture. Social structures, therefore, are directly affected by globalization. Over the years, globalization has gained many connotations pertaining to progress, development, and integration. On the one hand, some view globalization as a positive phenomenon. For instance, Swedish journalist Goran globalization as “the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit with somebody on the other side of the world” (p. 9). On the other hand, some see it as occurring through and with regression, colonialism, and destabilization. In the mid-1990s, (MartinKhor, the former’ president of Third World Network (TWN) in Malaysia, once regarded globalization as colonization. In this chapter, different definitions of globalization will be discussed. The task of conceptualizing it reveals a variety of perspectives. To understand further the concept, different metaphors will be used. These metaphors will also allow an appreciation of earlier epochs before globalization and the present globalized world. The final lesson in Chapter 1: Defining Globalizationthis chapter will be devoted to a general discussion of globalization theories. The following section will highlight the different views scholars have toward globalization. The Task of Defining Globalization Since its first appearance in the Webster’s Dictionary in 1961, many opinions about globalization have flourished. The literature on the definitions of globalization revealed that definitions could be classified as either () broad and inclusive or (2) narrow and-exclusive. The one offered by Ohmae in 1992 stated, “. globalization means the onset of the borderless world...” (p. 14). This is an example ofa broad and inclusive type of definition. If one uses such, it can include a variety of issues that deal with overcoming traditional boundaries. However, it does not shed light on the implications of globalization due to its vagueness. Narrow and exclusive Hefinitions are better justified but can be limiting, in the sense that their application adhere to only particular definitions. Robert definition suits best in this type: “the characteristics of the globalization trend include the internationalizing of production, the new international division of labor, new migratory movements from South to North, the new competitive environment that accelerates these processes, and the internationalizing of the ‘state!.. making states into agencies of the globalizing world” (as cited in RAWOO Netherlands Development Assistance Research Council, 2000, p. 14). Other definitions of globalization are shown in chronological order’ in the Appendix. Each could fall to either one of the two types of definitions. cab ype No matter how one classifies a definition of globalization, the concept is_ complex and multifaceted as the definitions deal with either economic, political, ‘or social dimensions. In fact, in a comprehensive study of (A@ Mefinitions by the Geneva Center for Security Policy (GCSP) in 2006, 67 of them refer to economic dimension. These definitions include’ political and social. dimensions as well. The sheer number and complexity of definitions do not mean that there is a remarkable improvement in every definition given by scholars.«Kumar(2003) took on a different argument about the issué. To him, the debate about what can be done about globalization and what it is are similar. This is in relation to what some academics have claimed about defining globalization—it is a useless task. ‘A more recent definition was given by Ritz@F!(2018)) “globalization is a transplanetary process or a set of processes involving increasing liquidity and the growing multidirectional flows of people, objects, places, and information as well as the structures they encounter and create that are barriers to, or expedite, The Contemporary Worldization could ” (p. 2). Generally, this definition assumes that ee hings flow bring either or both integration andjor fragmentation. Although T” easly in a global word, hindrances or structural BIOEKS are a0 PreseN blocks could slow down one’s activity n another country or could even lm places a person can visit, > e 'f's0, why are we going to spend time studying this concept? How can W' appreciate these definitions? How can these help us understand globalization? Fist the perspective ofthe Gerso}) who defines globalization shapes its definition. The overview of definitions implies that globalization is many things tomany different people. In 1996,/arjun’ ‘Appaduraisaid, “globalization is a ‘world of things’ that have ‘different speeds, axes! points of origin.and termination, and varied relationships to institutional structures in different regions, nations, or societies’”’(ascited in Chowdhury, 2006, p.137). Inamore recent study, ALRhodan (2006) wrote that definitions suggest ‘the perspective of the author on the origins and the geopolitical implications of Slobalization. It is a starting point that will Guide the rest of any discussions. in effect, one’s definition and perspective could determine concrete steps in addressing the issues of globalization. For example, if one sees globalization as positive, the person can say that itis alunifying ] On the other hand, ifit is deemed as creatinggreater inequalitieslamong nations, globalization is negatively treated. Second, to paraphrase the sociologist Cesare Poppi: Globalization is the debate and the debate is globalization, One became part and parcel of the other. ‘As Poppi (1997) wrote: “The literature sternming from the debate’on globalization has grown in the last decade beyond any individual's capability of extracting a workable definition of the concept. In a sense, the meaning of the concepts self evident, in another, it is vague and obscure as its reaches are wide and constantly shifting. Perhaps, more than any other concept, globalization is the debate about it” (as cited in Kumar, 2003, p. 95). Third, globalization is a reality. it is changing as human society develops. It has happened before andis still happening today. We should expect it to continue to happen in the future. The future of globalization is more difficult to predict. What we could expect in the coming years is what has happened over the past 50 years and that is the fluidity and complexity of globalization as a concept, which made more debates, discussions, and definitions than agreements on it. Overall, globalization is a concept that is not easy to define because in reality, globalization has a shifting nature. It is complex, multifaceted, and can be influenced by the people who define it. Moreover, the issues and concerns Chapter 1: Defining Globalization Binvolving globalization have a wide range—from the individual to society, from. small communities to nations and states, and from the benefits we can gain from it to the costs it could carry. In his article, “The Globalization of Nothing,” Ritzer (2003) said, “attitudes toward globalization depend, among other things, on whether one gains or loses from it” (p. 190). Nevertheless, the task of defining globalization should stimulate more discussions about it. More importantly, the fact that we experience globalization should give one the interest of engaging in the study of it. Metaphors of Globalization In order for us to better understand the concept of globalization, we will utilize metaphors. Metaphors make use of one term to help us better understand another term. In our case, the states of matter—solid and liquid—will be used. In addition, other related concepts that are included in the definition such as structures and flows will be elaborated. Solid and Liquid The epochs that preceded today’s globalization paved way for people, things, information, and places to harden over time. Consequently, they have limited mobility (Ritzer, 2015). The social relationships and objects remained where they were created. Solidity also refers to barriers that prevent or make difficult the movement of things. Furthermore, solids can either be natural or man- made. Examples of natural solids are landforms and bodies of water. Man-made barriers include the Great Wall of China and the Berlin Wall. An imaginary line such as the nine-dash line used by the People’s Republic of China in their claim to the South China Sea is an example of modern man-made solid. This creates limited access of Filipino fishers to the South China Sea. Obviously, these examples still exist. However, they have the tendency to melt. This should not be taken literally, like an iceberg melting. Instead, this process involves how we can describe what is happening in today’s global world. Itis becoming increasingly liquid. Liquid, asa sane ‘matter, takes the shape of its container. Moreover, liquids are not fixed Liquidity) therefore, refers to the increasing ease of movement of people, things, information, and places in the contemporary world. Zygmunt Bauman’s ideas were the ones that have much to say about the characteristic ity. First, today’s liquid phenomena change quickly and their aspects, ial and temporal/ are in continuous fluctuation. This means that space and time are crucial elements of globalization. In global finance, for instance, The Contemporary Worldphenomena. lows are the mover PB istic of character changes in the stock market are a matter of seconds. Another jideos ple, vide liquid phenomena tha thelr Tovement i dificult to stop) For °¥9 al THe uploaded on YouTube or Facebook are unstoppable once they becom Neraes So-called Internet sensations become famous not only in their homelan eee cas ‘ies to the entire world. Finally, the forces (the liguid ones) made political boundari sis brit to more permeable to the flow of people and things (Cartier, 2001). This brings us wi hat Ritzer (2015, p. 6) regarded as the most important characteristic of liquid: ° ‘Gots tomtom srs pa (especially solids).” The clearest cxample's the decline, if not death, of the nation-state. Liquidity and solidity are in constant interaction. However, liquidity is the one increasing and Proliferating today. Therefore, the metaphor that could best describe globalization is liquidity. Liquids do flow and thisidea of flow (Appadurai,, 1996; Rey and Ritzer, 2010) will be the focus of the next discussion. Also, it should be expected that this concept will appearin the succeeding lessons. The literature on globalization makes use of the concept of flows. Flews The previous section described the melting process of solid phenomena followed by the increase in liquidity. It is only logical to discuss the flows of liquid Nov ‘ople, things, places, and information brought by the growing “porosity” of global limitations (Ritzer, 2015). Think of the different foreign cuisines being patronized and consumed by the Filipinos. Aside from local dishes, many of us are fond of eating sushi, ramen, hamburger, and French fries—foods introduced to us by foreign cultures. Clearly, foods are being globalized. Another example of flows is global financial crises. As Landler (2008, p. C1) put it: “In global financial system, national borders are porous.” This means that a financial crisis in a given country can bring ramifications to other regions of the world. An example of whichis the spread of the effects of American financial crisis on Europe in 2008. The following are other kinds of flows that can be observed today: poor illegal migrants flooding many parts of the world (Moses, 2006), the virtual flow of legal and illegal information such as blogs and child pornography, respectively, and immigrants recreating ethnic enclaves in host countries. A concrete example is the Filipino communities abroad and the Chinese communities in the Philippines. ! Mm Aver nN Chapter 1: Defining GlobalizationGlobal rs on d issues in defining derstand easily the jon will give YOU jobalization We have established the many definitions of ant globalization and the metaphors that we can use to UN concept. We have also looked into its origins and history. This sect aglimpse of the important theories on globalization. We will analy2e i culturally, economically, and politically in this book as reflected in the succes ing chapters. In the meantime, it would be helpful to assert that the thiebries see globalization as a process that increases either homogeneity or heterogeneity. Homogeneity refers to the increasing sameness in the world as cultural inputs, economic factors, and political orientations of societies expand to create common practices, same economies, and similar forms of government. Homogeneity in culture is often linked to cultural imperialism. This means, @ given culture influences other cultures. For example, the dominant religion in our country is Christianity, which was brought to us by the Spaniards. Another example is Americanization, which was defined by Kuisel (1993) as “the import by non-Americans of products, images, technologies, practices, and behavior that are closely associated with America/Americans” (p. 96). In terms of the economy, there is recognition of the spread of neoliberalism, capitalism, and the market economy in the world (Antonio, 2007). Global economic crises are also Products of homogeneity in economic globalization. Stiglitz (2002), for instance, blamed the International Monetary Fund (IMF) forits “one-size-fits all” approach which treats every country in the world as the same. In the end, rich countries become advantageous in the world economy at the expense of poor countries, which leads to increased inequality among nations. The political realm also suffers homogenization if one takes into account the emerging similar models of governance in the world. Barber (1995) said that “McWorld” is existing. It means only one political orientation is growing in today’s societies. The global flow of media is often characterized as media imperialism. TV, music, books, and movies are perceived as imposed on developing countries by the West (Cowen, 2002). Media imperialism undermines the existence of alternative global media originating from developing countries, such as the Al Jazeera (Bielsa, 2008) and the Bollywood (Larkin, 2003), as well as the influence of the local and regional media. The Internet can be seen as an arena for alternative media. Cultural imperialism denies the agency of viewers, but people around the world often interpret the same medium (e.g., a movie) in significantly different ways. Global media are dominated by a small number of large corporations. As McChesney (1999) put it, this is being “extended from old media to new Chapter 1: Defining Globalization Ve]media” (p. 11), such as Microsoft, Facebook, Twitter, Google, and Apple's iTunes. As a result, in the long run, the Internet could end up being less diverse and competitive. Independent Media Center, associated with the alter-globalization movement, helps to counter this trend. It disseminates information to facilitate global participation of activists. Hacktivists extend activism to the Internet by hacking into computer programs to promote a particular cause uris, 2005). Ritzer (2008) claimed that, in general, the contemporary worldis undergoing the process of McDonaldization. It is the process by which Western societies are dominated by the principles of fast food restaurants. McDonaldization involvesthe global spread of rational systems, such as efficiency, calculability, predictability, and control. Ritzer (2008) pointed out that this process is “extended to other businesses, sectors, and geographic areas” (p. 169). Grobalization, in contrast to localization, is 4 process wherein nations, corporations, et impose themselves on geographic areas in order to gain profits, power, and soon (Ryan, 2007). Ritzer (2007) also espoused the idea that globalization can also be seen 3 a flow of “nothing” as opposed to “something,” involving the spread of non-places, non- things, non-people, and non-services. ertains to the creation of various cultural nthe other hand, heterogeneity pe practices, new economies, and political groups because of the interaction of elements from different societies in the world. Heterogeneity refers to the differences because of either lasting differences or of the hybrids or ‘combinations of cultures that can be produced through the different transplanetary processes. Contrary to cultural imperialism, heterogeneity in culture is associated with cultural hybridization. A more specific concept is “glocalization” coined, by Roland Robertson in 1992. To him, as global forces interact with local factors or a specific geographic area, the “glocal” is being produced. Economic issues are not exempted from heterogeneity. The commodification of cultures and “glocal” markets are examples of differentiation happening in many economies around the world. The same goes with political institutions. Barber (1995) also provided the alternate of “McWorld”—the “Jihad.” As Ritzer (2008) mentioned, it refers to the political groups that are engaged in an “intensification of nationalism and that leads to greater political heterogeneity throughout the world” (p. 576). Although homogeneity and heterogeneity give us idea about the effects of globalization, the picture is not yet complete. The theories about globalization will be clarified as we look closer at each of them in the succeeding chapters. | a ‘The Contemporary WorldDynamics of Local and Global Culture Global flows of culture tend to move more easily around us ee ever before, especially through non-material digital forms. There are th . perspectives on global cultural flows. These are differentialism, hybridization, and convergence, Cultural differentialism emphasizes the fact that cultures are essentially different and are only superficially affected by global flows. The interaction of cultures is deemed to contain the potential for “catastrophic collision.” samuel Huntington's theory on the clash of the civilizations proposed in 1996 best exemplifies this approach. According to Huntington, after the Cold War, political economic differences were overshadowed by new fault lines, which were primarily cultural in nature. Increasing interaction among different “civilizations” (Such as the Sinic, Islamic, Orthodox, and Western) would lead to intense clashes, especially the economic conflict between the Western and Sinic civilizations and bloody political conflict between the Western and Islamic civilizations (Huntington, 2004). This theory has been critiqued for a number of reasons, especially on its portrayal of Muslims as being “prone to violence” (Huntington, 1996). The cultural hybridization approach emphasizes the integration of local and global cultures (Cvetkovich and Kellner, 1997). Globalization is considered to bea creative process which gives rise to hybrid entities that are not reducible to either the global or the local. A key concept is “localization” or the interpenetration of the global and local resulting in unique outcomes in different geographic areas (Giulianotti and Robertson, 2007, p. 133). Another key concept is Arjun Appadurai’s “‘scapes” in 1996, where global flows involve people, technology, finance, political images, and media and the disjunctures between them, which lead to the creation of cultural hybrids. The cultural convergence approach stresses homogeneity introduced by globalization, Cultures are deemed to be radically altered by strong flows, while cultural imperialism happens when one culture imposes itself on and tends to destroy at least parts of another culture. One important critique of cultural imperialism is John Tomlinson’s idea of “deterritorialization” of culture. Deterritorialization means that it is much more difficult to tie culture to a specific geographic point of origin. Chapter 1: Defining GlobalizationThe Globalization of Religion Globalization has played a tremendous role in providing a context for the current revival and the resurgence of religion. Today, most religions are not relegated to the countries where they began. Religions have, in fact, spread and scattered on a global scale. Globalization provided religions @ fertile milieu to spread and thrive. As Scholte (2005) made clear: “Accelerated globalization of recent times has enabled co-religionists across the planet to have greater direct contact with one another. Global communications, global organizations, global finance, and the like have allowed ideas of the Muslims and the universal Christian church to be given concrete shape as never before” (p. 245). Information technologies, transportation means, and the media are deemed ion of their religious important means on which religionists rely on the disseminati ideas. For instance, countless websites that provide information about religions have been created. This makes pieces of information and explanations about different religions ready at the disposal of any person regardless of his or her geographical location. In addition, the Internet allows people to contact each other worldwide and therefore hold forums and debates that allow religious ideas to spread. jortant role in the dissemination of radio stations, and Furthermore, media also play an imp religious ideas. In this respect, a lot of television channels, print media are founded solely for advocating religions. Modern transportation has also contributed considerably to the emergence, revivalism, and fortification of religion. In this respect, Turner (2007) cited the case of Islamic revivalism in Asia which “is related to the improvement in transportation that has allowed many Muslims to travel to Mecca, and return with reformist ideas” (p. 163). Modern technology, therefore, has helped religions of different forms, such as fundamentalist, orthodox, or modernist to cross geographical boundaries and be present everywhere. jerable Globalization has also allowed religion or faith to gain consi significance and importance as a non-territorial touchstone of identity. Being a source of identity and pride, religion has always been promoted by its practitioners so that it could reach the level of globality and be embraced by a5 many people as possible. Muslims, for instance, aspire to establish the Islamic Ummah, a community of believers. By paving the way for religions to come in contact with each other and providing a context for their flourishing and thriving: globalization has brought such religions to a circle of competition and conflicts. FB) Pe conemporay WoldAs Turner (2007) explained: into a worldsystem of Globalization transforms the generic ‘religion’ - c specialization competing and conflicting religions. This process of institutional ‘ has transformed local, diverse and fragmented cultural practices into recognizable systems of religion. Globalization has, therefore, had the Paradoxical effect of making religions more self-conscious of themselves 25 being “world religions.” (p. 146) Such conflicts among the world religions exhibit a solid proof confirming the erosion and the failure of hybridization. Globalization, as stated in the above excerpt, makes religions more conscious of themselvesas being “worldreligions” reinforcing their respective specific identities. These identities are strengthened by globalization and cannot, in any way, intermingle or hybridize. Since religions have distinct internal structures, their connections to different cultures and their rituals and beliefs contradict. For instance, Islam and Christianity are mostly incompatible with each other, These religions cannot be hybridized or homogenized even if they often come in contact. Though religion is strengthened and fortified by globalization, it represents a challenge to globalization’s hybridizing effects. Religion seeks to assert its identity in the light of globalization. As a result, different religious identities come to the fore and assert themselves. Such assertions of religious identities constitute a defensive reaction to globalization. Scholte (2005), in this respect, maintained, “At the same time as being pursued through global channels, assertions of religious identity have, like nationalist strivings, often also been partly a defensive reaction to globalization” (p. 245). It has been difficult for religion to cope with values that accompany globalization like liberalism, consumerism, and rationalism. Such phenomena advocate scientism and secularism. This, in fact, pushed Scholte to speak of the antirationalist faiths. Since he equated rationalism with globalization and considered religion anti-rationalist, it can be deduced that religion is anti- globalization. To quote Scholte (2005): Transplanetary relations have helped to stimulate and sustain some renewals of antirationalist faith, but global networks have more usually promoted activitiesinvolving rationalist knowledge. Contemporary revivalist movements have largely replayed a longterm tendency—orie that well predates contemporary accelerated globalization—whereby certain religious circles have from time to time revolted against modern secularism and scientism. (p.261) Chapter 1: Defining Globalization fia ween | ai : can be said that the anti-rationalist qualities ascribed af reich! WE an d pieneht of fundamentalist and extremist forms ae jot consider religion as purely anti-rationalist since many 8 : People reconcile reason and faith and make moderate trends within their religions. Nevertheless, globalization’s strict rationalism manifested in such phenomenaas liberalism and secularism can be incompatible with the norms and the values of certain religions. Globalization is also associated with Westernization and, Americanization. The dominance exerted by these two processes, particularly on theless developed countries, makes religion-related cultures and identities take defensive measures to protect themselves. Sometimes, extreme forms of resisting other cultural influence are being done, such as that of the Islamic State of aq and Syria (ISIS). ‘As Ehteshami (2007) pointed out, “Globalization is not only seen as a rival of Islamic ways, but also as an alien force divorced from Muslim realities. Stressing the negativeimpact of theloose morals: of Western ifeisadaily feature of airwaves in the Middle East” (p. 130). The imperialist aspirations of globalization and its incompatibility with Islam make globalization ‘completely alien to the Muslim its meaning is the realities. Since globalization is cultural construct at its core andi Western discourse, “promoting and engaging with it on the part of Muslimsis like accepting and promoting Western cultural values and their dominance” (p- 131)- 0 religion link automatically to the challenges of religion to globalization. In other words, while religion takes caution against the norms and the values related to globalization, it challenges the latter since religion does not approve its hybridizing effects, The idea of de-hybridizing of civilizations, effects of religion is approve’ which maintains that such dehybridizing upshot partitioning and clashes. The challenges of globalization t .d also by Samuel Huntington’s clas 5 spring also from the religious Globalization and Regionalization The processes of globalization and regionalization reemerged during the 1980s and heightened after the end of the Cold War in the 1990s. At first, it seems that these two processes are contradicting—the very nature of globalization is, by definition, global while regionalization is naturally regional. The regionalization of the world system and economic activity undermines from a liberalized global economy. This the potential benefits coming out because regional organizations prefer regional partners over the rest. Regional organizations respond to the states’ attempt to reduce the perceived negative effects of globalization. Therefore, regionalism is a sort of counter-globalization. ay The Contemporary World2 s consider 122007 survey, the Financial Times revealed that majority of European that globalization brings negative effects to their societies (as citedin sae en Meunier, 2010). Many policy makers and scholars think that globalization i be regulated and managed. The threats of an “ungoverned globalization” caP be countered what Jacoby and Meunier called managed globalization; itrefers tO “all attempts to make globalization more palatable to citizens” (p- 1)- __\t Is important, however, to consider the gradual development of inter- regional relations such as the Association of South East Asian Nations (ASEAN), the European Union (EU), or the South American trade bloc, Mercosur. In fact, a sort of “contagion effect” (Held et al., 2005, p.77) has spread during the past years. Regionalization in one part of the world encourages regionalization elsewhere—whether by imitation, ike the success of the European Single Market, or by “defensive” reaction, such as Mercosur’s establishment as response to the creation of NAFTA. According to this, regionalization and the development of interregionalism would indeed be global in nature. As Held et al. (2005) claimed, “the new regionalism is not a barrier to Political globalization but, on the contrary, entirely compatible with it—if not an indirect encouragement” (p. 77)- Hurrell (2007) captured this debate in his “one (global) world/many (regional) worlds relationship” (p. 1). Regional developments in one part of the world have affected and fueled regionalization everywhere else in a sort of contagion or domino effect. This fact, along with increasing developments in interregional cooperation, shows that the regionalization process is global in nature. Therefore, regionalization is intimately linked to globalization since it is part of it and it builds on it. The argument concerning the relationship between regionalization and globalization is perfectly summarized in this claim: The age of economic globalization has also been the age of regionalization, and much of the analysis of the new regionalism has been devoted to the links between the two tendencies. Thus, regionalism is seen as critical part of the political economy of globalization and the strategies that states (and other actors) have adopted in the face of globalization ... The emergence of regionalism needs to be understood within the global restructuring of power and production. The many worlds are very closely intertwined with the character and fate of the one. The core driving force is global even if the manifestation is regional. (Hurell, 2007, p. 4) Globalization “goes back to when humans first put a boat into the sea” (Sweeney, 2005, p. 203). We can understand globalization as “the increased flows of goods, services, capita, people, and information across borders” (Jacoby Chapter 1: Defining Globalipuabiedietiaae ®. 1, But as we have learned from the previous discussions, regioniand oe es are about and varying definitions of the term. Defining ae pa : alization is complicated Nevertheless, region, according to eechdacss ner (1999) is “a group of countries in the same geographically specnes oe) (p. 2.). Hurrell (2007) defined regionalization as the “societal integration and the often undirected process of social and economic interaction” (p. 4). In addition, regionalization is different from regionalism, which is “the formal process of intergovernmental collaboration between two or more states” (Ravenhill, 2008, p. 174). inAsia, as wellasother regions The motivations for the recent regionalizati in the world, cannot be isolated from one another. Its @ complex miaturt of factors. One of the reasons behind regionalism is the concen for security, which is to ensure peace and stability. Confidence building can be enhanced through ‘economic cooperation within a region. The ASEAN and the shanghai Cooperation Organisation (SCO) are regional organizations that seek strong security in Asia through cooperation. Huntington (1996), on the contrary, believed that culture and identity guide regionalization. As he put it, “In the post-Cold War world, states increasingly define their interests in civilizational terms” (P- 30). For him, culture and identity are civilizations: He identified nine major civilizations: Western, Latin American, ‘african, Islamic, Sinic, Hindu, Orthodox, Buddhist, and Japanese. He argued that international organizations like the EU or Mercosur share a common culture and identity and are far more successful than NAFTA, whose member states belong to different civilizations. If we follow Huntington’s idea of ‘the “clash of civilizations,” one could argue that the potential for such clash can be strong in Asia because many of those civilizations are, at the least, can be found in the region. economic motivations are arguably the main motivation behind contemporary regionalization. By entering in regional organizations, ‘asian states may regain some control over flows of capital and enhance their bargaining power against transnational economic actors such as investment groups or transnational corporations (TNCs) (De Martino and Grabel, 2003). Aside from this, domestic companies may benefit from belonging to @ regional market big enough to allow them scale economies while still being protected from global competition. in other words, regional organizations allow national companies the ‘opportunity to succeed in a protected but big enough market in a way that they would otherwise fail if exposed to global competition. Nevertheless, Finally, non-state actors, such as the TNCs, act as a driving force toward | regionalism. These TNCs, whose host countries are not part of a given regional trade agreement, find themselves in a disadvantaged commercial situation ‘ontemporary World | | | oyization in with respe : : jonal organization Pect to competing companies belonging to the region Pal cs will auestion. Given this situation, Ravenhill (2008) said that disadvantag aad Pai ret Rational governments to sign similar trade agreements in order tO aia tl eir disadvantaged commercial situation. Ld cll TET A eee Ave societies in the world becoming more similar (homogenous) oF more different (heterogeneous)? What do you think are the advantages and disadvantages of homogenization of culture? How about heterogenization? Which of the aforementioned views on the history of globalization you find most appealing? Why? In this activity, 'ook for and read three newspaper opinion editorials (op- discussing globalization. You may use local or international op-eds. Write a 50-word summary for each op-ed. Identify whether they subscribe to a particular definition discussed in class or they have a new definition. Also, identify whether they are broad and inclusive or narrow and exclusive. eds) Origins and History of Globalization The previous discussions answered the question “What is globalization?” The next question “Where did it start?” is not easy to answer as well because there are different views about this. This book generally adheres to the perspective that the major points of the beginnings of globalization started after the Second World War. Nevertheless, it would mean no harm to look at the five different perspectives regarding the origins of globalization. Hardwired According to Nayan Chanda (2007), it is because of our basic human need to make our lives better that made globalization possible. Therefore, one can trace the beginning of globalization from our ancestors in Africa who walked out from the said continent in the late Ice Age. This long journey finally led them to all- known continents today, roughly after 50,000 years. Chapter 1: Defining GlobaliziChanda (2007) mentioned that commerce, religion, politics, and warfare are the “urges” of people toward a better life. These are respectively connected to four aspects of globalization and they can be traced all throughout history: trade, missionary work, adventures, and conquest. Cycles For some, globalization is a long-term cyclical process and thus, finding its origin will be a daunting task. What s importantis the cycles that globalization has gone through (Scholte, 2005). Subscribing to this view will suggest adherence to the dea that other global ages have appeared, There is also the notion to suspect that this point of globalization will soon disappear and reappear Epoch Ritzer (2015) cited Therborn’s (2000) six great epochs are also called “waves” and each has its own origin. Today unique if this is the case. The difference of this view from the second view (cycles) ig that it does not treat epochs as returning, The following are the sequential of globalization. These y's globalization is not occurrence of the epochs: 1. Globalization of religion (fourth European colonial conquests (late fifteenth century) arly nineteenth centuries) to seventh centuries) 2 Intra-European wars (late eighteenth to € 3 4. Heyday of European imperialism (mid-nineteenth century to 1918) 5. Post World War Il period 6. Post-Cold War period Events considered as part of the fourth view in explaining specific events are also c his is the case, then several points can be treated the origin of globalization. if tt as the start of globalization. Gibbon (1998), for example, argued that Roman conquests centuries before Christ were its origin. In an issue of the magazine the Economist (2006, January 12), it considered the rampage of the armies of Genghis Khan into Eastern Europe in the thirteenth century. Rosenthal (2007) gave premium to voyages of discovery—Christopher Columbus's discovery of ‘America in 1942, Vasco da Gama in Cape of Good Hope in 1498, and Ferdinand Magellan's completed circurnnavigation of the globe in 1522. Zontemporary WorldTHE recent years could also be regarded as the beginnings of aor with reference to specific technological advances in transportation a1 communication. Some examples include the first transatlantic telephone cable (1956), the first transatlantic television broadcasts (1962), the founding of the moder Intemet ins988, and the terrorist attacks onthe Twin Towersin New York (2001). Certainly, with this view, more and more specific events will characterize ot ju i “| not just the origins of globalization but also more of its history. Broader, More Recent Changes Recent changes com, the last half of the twenti changes as the origin of rised the fifth view. These broad changes happened in 'eth century. Scholars today point to these three notable Blobalization that we know today, They are as follows: The emergence of the United War Il) P States as the global power (post World 2. The emergence of multinational corporations (MNCs) 3. The demise of the Soviet Union and the end of the Cold War Through its dominant military and economic power after Wil, the United States was able to outrun Germany and Japan in terms of industry. Both Axis Powers and Allies fall behind economically as compared to the new global power. Because of this, the United States soon began to progress in different aspects like in diplomacy, media, film (as in the Hollywood), and many more. Before MNCs came into being, their roots were from their countries of origin during the eighteenth to early nineteenth centuries. The United States, Germany, and Great Britain had in their homeland great corporations which the world knows today. However, they did not remain there as far as their production and market are concerned. For example, Ford and General Motors originated in the United States but in the twentieth century, they exported more automobiles and opened factories to other countries. More recent than the first two would be the fall of the Soviet Union in 1991. This event led to the opening of the major parts of the world for the first time since the early twentieth century. Many global processes—immigration, tourism, media, diplomacy, and MNCs—spread throughout the planet. This paved way for the so-called “free” world. China, even though the government remains communist, is on its way to becoming a major force in global capitalism (Fishman, 2006). Moreover, China is also globalizing in terms of other aspects such as their hosting of the Olympics in 2008. Chapter 1: Defining Globalization iGlobal Demography oa A a ichaed is a singular historical period during which mortality a ine from. High to low levels in a particular country or region. ‘oad outlines of the transition are similar in countries around the world, but the pace and timing of the transition have varied considerably. The transition started in mid: or late 1700s in Europe. During that time, ae; rates and fertility began to decline. High to low fertility happened 200 years in France and 100 years in the United States. In other parts of the world, the transition began later. It was only in the twentieth century that mortality decline in Africa and Asia, with the exemption of Japan. ‘According to Maddison (2001), life expectancy in India was only 24 years in the early twentieth century while the same life expectancy occurred in China in 1929 until 1931. Fertility decline in Asia did not begin until the 1950s and so on. In the case of Japans it was until the 1930S that “total fertility rate did not drop below five births per woman” (Shigeyuki et al,, 2002, p-250). This resulted in rapid population growth after the Second World War, affecting the age structure of Asia and the developing world. Specifically, the baby boom in the developing world was caused by the decline of infant and child mortality rates. The West, on the other hand, experienced baby boom that resulted from rising birth rates. ‘A remarkable effect of the demographic transition, 25 Shigeyuki et al. (2002) y that emerged between Japan and “the enormous gap in life expectanc ‘e world on the other” (p- 251): By stated, is 1d the rest of th the West on the one hand an 1820, the life expectancy at birth of Japan and the West was 12 years greater than | that of other countries. It increased by 20 years By 1900- Although there was an | improvement in life expectancy all throughout the world in 1900-1950, the gap | had reached 22 years. In 1999, the gap declined to "4 Years. These differences in time of transition affected the global population. During the nineteenth century, Europe and the West had an increased in share in the world’s population, from a2.0 percent to 33.0 percent, while Asia and Oceania’s contribution dropped from 69.0 percent to 56.7. India and China suffered from economic stagnation and decline during that time. There was a reverse in global population shares during the twentieth | century as Africa, Asia, Latin America, and Oceania had high levels of population | growth rates. According to Shigeyuki et al. (2002), population growth shows 2 | more remarkable shift: “Between 1820 and 1980, 69.3 percent of the world’s | population growth occurred in Europe and Western offshoots. Between 1gsoand | 2000, however, only 11.7 percent occurred in that region” (p. 252). he Contemporary Worldred toward The United Nations projected that population growth will be shifted towe ulation pin "ts estimated that by 2150, the regions’ share to the world pol peneiln 20 percent, relatively much greater than its share in 1820 (seven GFtbio bliss : 1900 (six percent), Also in 2150, there will be a projected increase we combine the populations of Asia, Latin America, and Oceania. matical ae age structure, the overall trend in Japan and the West was although tenpors 50. Their dependency ratio was close to 0.5. It only increased, Japan's depencieny the baby boom ater the Second World War occurred. dependency rati ¥ Fatio, however, increased between 1888 and 1920. Its Y ratio was higher than the West between 1920 and the early 1950s. It dropped in 1 i pp 970 and later since its precipitous decline in childbearing during the 19505 and low fertility rates in recent years, The i 2 a ra ee Countries like India and the Philippineshad higher dependency ran the West in 1900. A great increase in dependency ratio was caused by the decline in infant and child mortality and high levels of fertility, with its peak around 1970. Dependency ratios started to disappear because there is a decline in global birth rate. Furthermore, the gap in fertility between the West and the less developed countries became smaller by the twenty-first century. Over the next 50 years, the cases of dependency ratios of these two areas in the world will be reversed (Shigeyuki et al., 2002). The aging of populations will cause.a rise in dependency ratio, starting in the West. Global Migration The nuances of the movements of people around the world can be seen through the categories of migrants—“vagabonds” and “tourists” (Bauman, 1998). Vagabonds are on the move “because they have to be” (Ritzer, 2015, p. 179}—they are not faring well in their home countries and are forced to move in the hope that their circumstances will improve. Tourists, on the other hand, are on the move because they want to be and because they can afford it. Refugees are vagabonds forced to flee their home countries due to safety concerns (Haddad, 2003). Asylum seekers are refugees who seek to remain in the country to which they flee. According to Kritz (2008), those who migrate to find work are involved in labor migration. Labor migration is driven by “push” factors (eg, lack of employment opportunities in home countries), as well as “pull” factors (work available elsewhere). Labor migration mainly. involves the flow of less-skilled and-unskilled workers, as well as illegal immigrants who live on the margins of the host society (Landler, 2007). Chapter 1: Defining Globali:of ites os flows, labor migration still faces many restrictions. Many spate anit rel ated to the Westphalian conception of the nation-state seks 3 onto ly associated with it. Shamir (2005) discussed that the state may I migration because it involves the loss of part of the workforce. ‘An influx of migrants can lead to conflicts with local residents. Concems about a also affect the desire of the state to restrict population flows (Moses, 06). Migration is traditionally governed either by “push” factors such as political he home country or by persecution, economic depression, war, and famine in t labor shortage, and a “pull” factors such as a favorable immigration policy, @ similarity of language and culture in the country of destination (Ritzer, 2015)- Global factors, which facilitate easy access to information about the country of destination, also exert a significant influence. Many countries face issues of illegal migration. The United States faces 2 major influx of illegal immigrants from Mexico ‘and other Central American states (Thompson, 2008). A fence is being constructed on the US-Mexico border to control this flow of people (Fletcher and Weisman, 2006). However its efficacy is questioned and it is thought that it will only lead illegal immigrants to adopt more dangerous methods to gain entry. In addition, tighter borders have also had the effect of “locking in” people who might otherwise have left the country (Fears, 2006). Other countries with similar concerns about illegal immigration include Great Britain, Switzerland, and Greece as well as countries in Asia. case can be made on the backlash against illegal immigrants keep the Borders Open”). In the North, such does work which locals may A strong (Economist, 2008, January 3, immigrants constitute a younger workforce that not perform, and they are consumers who contribute to growth. They also send remittances back to family members in the country of origin, which improves the lives of the recipients, reduces poverty rates, and increases the level of education ‘as well as the foreign reserves of the home country (Ecoriomist 2007, November 1). Banks are often unwilling or unable to handle the type (small amounts of money) and volume of remittances. As a result, specialized organizations play a major role in the transmission of remittances. According to Malkin (2007), the Philippines is one of the leaders when it comes to the flow of remittances ($14.7 billion), next to India ($24.5 billion) and China (§21. billion). The term “diaspora” has been increasingly used to describe migrant communities. Of particular interest is Paul Gilroy’s (1993) conceptualization of the diaspora as a transnational process, which involves dialogue to both imagined and real locales. Diasporization and globalization are closely interconnected and the Zontemporary WorldTodays : : ufoix, 2007): expansion of the latter will lead to an increase in the former ” pnotogy such 25 there exists “virtual diasporas’ (Laguerre, 2002) which utilize tec the Internet to maintain the. community network. leat eae a in ed What do you think is the effect. of a high dependency ratio in develops Countries? In developing countries? 's the heightened flow of people a unique feature of the current global era? 3. Has globalization facilitated or obstructed greater labor migration? OFW eerie Although globalization is an overwhelming concept, it is experienced by People in number of ways in real terms. For instance, globalization of technology improved modern transportation and communication. As result, people become more mobile and are able to reach different places around the globe. There are various reasons why people leave their country of origin. Through this activity, you should be able to gain a first-hand knowledge of the experiences of Overseas Filipino Workers (OFWs), people who obviously reached other countries. Their stories could provide a concrete understanding of how globalization affects themselves, their families, and the country. 1. Find a former or a current OFW to be interviewed. Your respondent’s name should not be revealed in class to Protect the person’s identity and ensure anonymity. Use the following guide questions (you may add adeitional questions): ~ Howlong have you stayed abroad? ~- What are the purposes for your stay there? What were your most unforgettable experiences there? How will you describe them, good or bad? How will you compare the Philippines with other countries? Do you want to go back abroad or to other countries in the future? Why or why not? 3. Share to the class the results of your interview and your personal insights about your respondent's experience. Chapter 1: Defining GlobalizTER 2 THE GLOBAL ECONOMY Introduction lems in the world. Their s, which they created | overty and hunger The United Nations (UN) tried to address the different probl efforts were guided by the eight Millennium Development Goal in the 1990s. Among these eight goals, the eradication of extreme Pt ranked as the first. The other seven goals include: achieving universal primary education, promoting gender equality and women empowerment, reducing child mortality, improving maternal health, combating diseases like HIV/AIDS and ™: g environmental sustainability, and having a global partnership for develor The UN tried to achieve them by the year 2015. is of living around the world, we can expect different a personis officially living in poverty if he makes a day. This is called the poverty line or erty which, according to ion of basic human needs | alaria, ensurins pment (United Nations, 2015)- Since there are different standard: meanings attached to it. In the Philippines, less than 100,534 pesos a year, around 275 pesos poverty threshold. But we are going to focus on extreme po' the UN (2015), is a condition characterized by severe deprivati including food, safe drinking water, sanitation facilities, health, shelter, education, and | information. The UN defines ‘extreme or absolute poverty as living on less than $1.25 a day. eliminate extreme poverty for all people by 2030. ‘he results were in. The UN (2015) reported that 836 million me poverty but that is down from 1.9 billion, so there is success or at | least a lot of progress. The World Bank predicted that by 2030 the number of people living in extreme poverty could drop to less than 400 million. Of course that assumes everything will keep improving as it has been. However, climate change has to be considered sinceit | is a threat to these improvements in global poverty. Most people who have been lifted out of extreme poverty are still poor and being from disease to lack of water. Income inequality is without electricity. The organization aims to It was three years ago andtl people still live in extrel poor comes with serious problems, rampant and one in seven people still live So why is extreme poverty falling? The answer to this is really complicated. A set of humanitarian aid, and the policies of international factors like better access to education, | The Contemporary Worldorganizations like the UN. have made a difference. However, : become contributor is economic globalization. The world’s economies have ret more interconnected and free trade has driven the growth of many develo? economies. Economic Globalization and Global Trade According to the United Nations (as cited in Shangquan, 2000), “Economic globalization refers to the increasing interdependence of world economies as 8 result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies. Itreflects 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.” (p. 1) There are two different types of economies associated with economic globalization—protectionism and trade liberalization. Protectionism means “a policy of systematic government intervention in foreign trade with the objective of encouraging domestic production. This encouragement involves giving preferential treatment to domestic producers and discriminating against foreign competitors” (McAleese, 2007 as cited in Ritzer, 2015, p. 1169). Trade protectionism usually comes in the form of quotas and tariffs. Tariffs are required fees on imports or exports. For instance, a pen that costs $1.00 in Country A and in Country B, it would be given five-dollar tariff. The pen would become $6 in Country B. This policy was practiced during the mercantilist era, from sixteenth to seventeenth centuries until the early years of the Industrial Revolution (Chorev, 2007). The Great Depression of 1929 marked the peak of protectionism. Until today, protectionism exists in the world economy despite the growth of trade liberalization. Countries such as China, Japan, and the United States are being accused of practicing protectionism (Ritzer, 2015). World War Il heavily influenced the shifting of the dominant economic policy from protectionism to trade liberalization or free trade. Free trade agreements and technological advances in transportation and communication mean goods and services move around the world more easily than ever. We are talking about everything from shoes and bananas to innovations and ideas. Let us take mobile phones as an example. Mobile phones seem to have good consequences for everything including reducing poverty: According to economist Jeffrey Sachs, mobile phones are the “single most transformative technology” when it comes to the developing world. Phones give people access to banking and payment Chapter 2: The Global Ecosystem: seks me : education an information. n some places, mobile are producing. Install information and get the best price for the crops they Soudan ok Wes ing cellphone towers is also a lot cheaper than running Etacaans meters of telephone lines, Economists call this leapfrogging, countries can skip straight to more efficient and cost-effective technologies that were not available in the past. International trade has also created new opportunities for people to sell their products and labor in 2 global marketplace. jeveloping ones, to Globalization made some countries, especially the de are gain more in the global economy at the expense of other nations. There various ways, however, the country can make trade easier with other countries while lessening the inequities in the global world. One of them is “fair trade” (Nicholls and Opal, 2005). Fair trade, as defined by the International Fair Trade ‘Association, is the “concern for the social, ‘economic, and environmental well- ‘oducers” (Downie, 2007, PP- c1-€5). It aims for a 1 economic system. Specifically, 1s,-establishment of more just sustainable production, outh and consumers in Products like coffee, ht of fair being of marginalized small pr more moral and equitable global with protection of workers and produce rentally sound practices and between producers in the S rking environment. late have been exchanged in igi it is concerned prices, engagement in environm: creation of relationships the North, and promotion of safe wor bananas, cotton, wine, tea, and choco! trade. ‘A concrete example of the growth of fair trade is the case of American coffee chains such as Starbucks and Dunkin’ Donuts. In 2006, there are $2.2 billion dollars spent on certified products, which is 42% greater than the preceding year (Ritzer, 2015).In turn, coffee growers suchas those in Brazil “get at least $1.29 per pound of coffee beans compared to the current market price of $1.25” (p. 296). o you think that the Philippines is harmed as other countries transfer their activities to us through outsourcing? 1 2, In what ways do international organizations help our country’s economy? i 3. Does the position of rich countries as giants in the economic chain threaten the status of less developed countries in the global market? ontemporary WorldEconomic Globalization and Sustainable Development There are some significant downsides to globalize trade and perhaps the strongest argument against economic globalization is its lack of sustainability or the degree to which the earth’s resources can be used for our needs, even in the future. Specifically, the development of our world today by using the earth’s Tesources and the preservation of such sources for the future is called sustainable development. In other words, development has to be ensured in and for the future enerations. One significant global response or approach to economic globalization is that of sustainable development, which seeks to chart 2 middle path between economic growth and a sustainable environment (Borghesi and Vercelli, 2008). The relationship between globalization and sustainability is multi- dimensional—it involves economic, political, and technological aspects. The continuous production of the world’s natural resources, such as water and fossil fuel allows humanity to discover and innovate many things. We were able to utilize energy, discover new technologies, and make advancements in transportation and communication. However, these positive effects of development put our environment at a disadvantage. Climate change accelerated and global inequality was not eradicated. This means that development, although beneficial at one hand, entails cost on the other. Environmental Degradation Development, especially economic development, was hastened by the Industrial Revolution. This is the period in human history that made possible the cycle of efficiency. Efficiency means finding the quickest possible way of producing large amounts of a particular product. This process made buying of goods easier for the people. Then, there is an increased demand. Ultimately, there was an increased efficiency. This cycle harms the planet in a number of ways. For instance, the earth’s atmosphere is damaged by more carbon emissions from factories around the world. Another example is the destruction of coral reefs and marine biodiversity as more and more wastes are thrown into the ocean. Many experts do not think that the planet can sustain a growing global economy. Deforestation, pollution, and climate change will not adjust for us, especially if increases in living standards lead people to demand more consumer goods like cars, meat, and smartphones.Harvey (2005) noted that neoliberals and environmentalists eee the impact of free trade on the environment. Environmentalists arB¥° fe environmental issues should be given priority over economic issues ianten 2007), Free trade, through its emphasis on the expansion of manufacturing: is associated with environmental damage. For their part, neoliberals see the efforts of the environmentalists as serious impediments to trade. Some seek to integrate these approaches. For instance, ecological modernization theory sees slobalization as a process that can both protect and enhance the énvironment (Yearley, 2007). Various efforts are Underway ‘to deal with climate change. However, strong resistance on the part of governments and corporations counters these. For instance, the Kyoto Protocol aimed at a reduction of global carbon emissions, but failed to take off largely because it was not ratified by the United States (Armitage, 2005). However, momentum is being built up in corporate circles in dealing with environmental problems. ‘There are significant challenges involved in implementing various measures such as “carbon tax” and “carbon neutrality” to deal with environmental problems (Ritzer, 2015). It is also difficult to find alternatives to fossil fuels. For instance, Barrionuevo (2007) stated that the use of ethanol as an alternative to gasoline has an attendant set of problems—it is less efficient and it has led to an escalation in the price of corn, which currently serves as a major source of ethanol. Although biofuels themselves produce lower emissions, their extraction and transport contribute significantly to total emissions. Previous experience in dealing with environmental issues indicates that a global view of the problemis required. A focus on specificregions, suchas Europe, overlooks impacts in other regions. Instead of dealing with the causes of global warming, there is some interest in “technological fixes” such as geoengineering (Dean, 2007). Food Security The demand for food will be 60% greater than it is today and the challenge of food security requires the world to feed 9 billion people by 2050 (Breene, 2016). Global food security means delivering sufficient food to the entire world population. It is, therefore, a priority of all countries, whether developed or less developed. The security of food also means the sustainability of society such as population growth, climate change, water scarcity, and agriculture. Breene Chapter 2: The Global Eo(2016) cited the case of India to show how complex the issue of food security is in relation to other factors: Agriculture accounts for 8x of the economy's output and 47%ofits workforce, India is the second biggest producer of fruits and vegetables in the world. Yet according to the Food and Agriculture Organization (FAO) of the united Nations, some 194 million Indians are undernourished, the largest number sstimated 15.2% of the population of hungry people in any single country. An e: jorld’s: of india are too malnourished to lead a normal life. A third of the w' malnourished children live in India (n.p.). | sociated with food security is But perhaps the closest aspect of human life as rotection the environment. The challenges to food security can of the environment. A major environmental problem is the destruction of natural habitats, particularly through deforestation (Diamond, 2006). Industrial fishing | has contributed to a significant destruction of marine life and ecosystems (Goldburg, 2008). Biodiversity and usable farmlanc ed at a rapid pace. be traced to the p' .d have also declin nmental challenge is that of the decline in the er supply because formed what was Another significant enviro! availability of fresh water (Conca, 2006). The decline in the wat of degradation of soll or desertification (Glantz, 1977), has trans nce considered a public good into a privatized commodity. The poorest areas of | the globe experience a disproportionate share of water-related problems. The problem is further intensified by the consumption of “virtual water} people inadvertently use up water from elsewhere in the world through the consumption of water-intensive products (Ritzer, 2015). The destruction of the water ecosystem may lead to the creation of “climate refugees, people who are .ccess to water or due to flooding” (Ritzer, 2015, ”” wherein | forced to migrate due to lack of a p. 211). Pollution through toxic chemicals has had a long-term impact on the environment. The use of persistent organic pollutants (POPs) has led to significant industrial pollution (Dinham, 2007). Greenhouse gases, gases that trap sunlight and heat in the earth’s atmosphere, contribute greatly to global warming. In turn, this process causes the melting of land-based and glacial ice with potentially catastrophic effects (Revkin, 2008), the possibility of substantia flooding, a reduction in the alkalinity of the oceans, and destruction of existing ecosystems. Ultimately, global warming poses a threat to the global supply food as well as to human health (Brown, 2007). Furthermore, population grow! intemporary Worldi ‘ is. The and its attendant increase in consumption intensify ecological problem: . ic waste global flow of dangerous debris is another major concern, with electronic W often dumped in developing countries. There are different models and agenda pushed by different organizations to address the issue of global food security. One ofthis is through sustainability. The United Nations has set ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture as the second ofits 17 Sustainable Development Goals (SDGs) for the year 2030. The World Economic Forum (2010) also addressed this issue through the New Vision for Agriculture (NVA) in 2009 wherein public-private partnerships were established. It has mobilized over $10 billion that reached smallholder farmers. The Forurn’s initiatives were launched to establish cooperation and encourage exchange of knowledge among farmers, government, civil society, and the private sector in both regional and national levels (Breene, 2016). Economic Globalization, Poverty, and Inequality The Swedish statistician Hans Rosling once said, “The 1 to 2 billion poorest in the world who don’t have food for the day suffer from the worst disease, globalization deficiency. The way globalization is occurring could be much better, but the worst thing is not being part of it.” Economic and trade globalization is the result of companies trying to outmaneuver their competitors. While you search for the cheapest place to buy shoes, companies search for the cheapest place to make those shoes. They find the cheapest sources of leather, dye, rubber, and of course, labor. The result is that labor-intensive products like shoes are often produced in countries with the lowest wages and the weakest regulations. This process creates winners and losers. The winners include corporations and their stockholders who earn more profit. They also include consumers who get products at a cheaper price. The losers are high wageworkers who used to make those shoes. Their jobs moved overseas. But what about the low wage foreign workers? Are they winning or losing? A lot of workers are thrown into hazardous working conditions but it is also true that many workers in developing countries are at least making more money. These jobs pay above average wages. People want these jobs and although the pay would be unacceptable in developed countries, they are often the best alternative. Chapter 2: The Global Ec. ee effect means an increase in one economic activity can lead i in other economic activities. For instance, investing in local businesses will lead to more jobs and more income. According to the economist Paul Krugman (as cited in The New York Times, July 8, 2013), “The Bangladeshi apparel industry is going to consist of what we would consider sweatshops or t won't exist at all. And Bangladesh, in particular, really really needs its apparel industry. It's pretty much the only thing keeping its economy afloat.” ic globalization called a form of economic tectionist policies like Not everyone agrees to this. Opponents of economi the outsourcing of jobs as exploitation and oppression, colonialism that puts profits before people. A few call for pro higher tariffs and limitations on outsourcing. Others focus on the foreign workers themselves by demanding they receive higher wages and more protection. The root of many arguments against economic globalization is that companies do not have to follow the same rules they do in developed countries. Some developing ge laws. They do not have regulations that vironment. Although nearly Iways enforced. countries have no minimum wa} provide safe working conditions or protect the e every country bans child labor, those laws are not a In the absence of regulation, itis still possible that workers would not be horribly mistreated. First, public awareness is growing along with the pressure from the international community to take steps to protect workers. For example, the United States produces an annual publication called the list of goods produced by child labor or forced labor. fa company is buying products from that list, they are likely to be blasted by officials and the media. So, awareness is the first step to improvement. The second step comes from those that support globalization. The pro-globalization set argues that as developing economies grow, there are more opportunities for workers, which leads to more competition for labor and higher wages. Economic globalization has helped millions of people get out of extreme poverty but the challenge of the future is to lift up the poor while at the same time keep the planet livable. One of the best ways to help those in extreme poverty is to enable them to participate in the economy. This applies to developing countries in the global marketplace and to individuals at the local level. A perfect example is microcredit. In 2006, a Bangladeshi professor named Muhammad Yunus wo" | the Nobel Peace Prize for implementing a simple idea. He gave small loans, 0" average around $100, to low-income people in rural areas. The borrowers, iho are mostly female, often used the money to fund plans that could rae their income. For example, they started small businesses, Microcredit was a success Zontemporary Worldid. Private and has since spread to developing countries throughout the worl board to lenders, governments, and nonprofit organizations have jumped On loan billions of dollars to the world’s most disadvantaged. By itself, microcredit is not going to solve the problem of extreme poverty but It supports the idea that enabling people to participate in the economy can make their lives better. Yunus (2012) explained, “In my experience, poor people are the world’s greatest entrepreneurs, Every day they must innovate in order ‘o survive. They remain poor because they do not have the opportunities to turn their creativity into sustainable income.” Microcredit, when it works, allows people to improve their lives by participating in the economy on their own terms. But we cannot forget that a lot of people who participate in the global economy are not doing it on their own terms, Many of the people who have emerged from extreme poverty in the last 25 years have jobs, wages, and working conditions that would be unthinkable in the developed world. Economists say that itis all right but itis progress that is very hard to achieve, Global Income Inequality Globalization and inequality are closely related. We can see how different nations are divided between the North and the South, developed and less developed, and the core and the periphery. These differences mainly reflect one key aspect of inequality in the contemporary world—global economic inequality. There are two main types of economic inequality: wealth inequality and income inequality. Wealth refers to the net worth of a country. It takes into account, all the assets of a nation—may they be natural, physical, and human—less the liabilities. In other words, wealth is the abundance of resources in a specific country. This means that wealth inequality speaks about distribution of assets. However, there is no widely recognized, monetary measure that sums up these assets (Economist, 2012). In order to measure global economic inequality, economists usually look at income using the Gross Domestic Product (GDP). Income is the new earnings that are constantly being added to the pile of a country’s wealth. When we talk about income inequality, we mean that new earnings are being distributed; it values the flow of goods and services, not a stock of assets (Economist, 2012). Let us look at both types of inequality in the global level. According to the Global Wealth Report 2016 by the Credit Suisse Research Institute, global wealth today is estimated to be about 3.5 trillion dollars and it is not distributed equally. Countries like the United States and Japan were able to increase their wealth. Chapter 2: The Global EcDui ieee however, the United Kingdom had a significant tbe: “Whilsibe Soe the report showed that income inequality continues to sence ‘om half collectively own less than 1 percent of total wealth, ‘op 10 percent own 89 percent of all global assets” (Credit Suisse Research Institute, 2016). Branko Milanovic (2011), an economist who specializes in global inequality, explained all this by describing an “economic big bang” wherein the Industrial Revolution caused the differences among countries. Through this “explosion” of industry and modern technology, some nations became economically developed while others were developing. Ultimately, the result is the economic gap among countries. The gap between the richest and the poorest nations are greater today than in the past. For instance, back in 1820, the Great pritain and The Netherlands were only three times richer than India and China, but today the ratio is 100:1 (Milanovic, 2011). wed a significant inequality are the forces ists believe that jon that alloy Although it is the Industrial Revoluti d international trade in the past, economic globalization an‘ responsible in today’s global income inequality. Many economi the world’s poorest people gained something from globalization. The rich, on the other hand, earned a lot more. Harvar' d Freeman (2011) d economist Richaré noted, “The triumph of globalization and market capitalism has improved living standards for billions while concentrating billions among the few” (as presented in OECD Policy Forum, Paris, May 2). In other words, the poor are doing a little better and the rich are becoming richer due to global capitalism. ‘Access to technology also contributed to worldwide income inequality. It. complemented skilled workers but replaced many unskilled workers. In modernized economies, jobs are more technology-based, generally requiring new skills. This is what economists referred to as skill-based technological change. AS a result, workers who are more educated and more skilled would thrive in those jobs by receiving higher wages. On the other hand, the unskilled workers will | fall behind. They will be left or ‘overtaken by machines or more skilled workers. In addition, manufacturing jobs that require low skills are moved overseas. The result is a widening gap between the rich and the poor as well as between high- skilled and low-skilled workers.The Third World and the Global South the cracks You probably heard of “First World Problems.” When someone screen on their phone or gets the wrong order at the coffee shop, and cl ie on to their social media accounts, you might see their complaints witha nes é “First World Problems.” What are the implications of talking about countries 2 First or Third? Where did these terms come from? These terms are outdated and inaccurate ways of talking about global stratification. How then are we going * talk about global stratification? Let us begin by deconstructing the idea of the First, Second, and Third World hierarchy by looking at their origins and their implications. The terms date back to the Cold War, when Western policymakers began talking about the world as three distinct political and economic blocs (Tomlinson, 2003). Western capitalist countries were labeled as the “First World.” The Soviet Union and its allies were termed the “Second World.” Everyone else was grouped into “Third World.” After the Cold War ended, the category of Second World countries became null and void, but somehow the terms “First World” and “Third World” stuck around in the public consciousness. Third World countries, which started as just a vague catchall term for non: Ince countries, came to be associated with impoverished states, while the First World was associated with rich, industrialized countries. In addition to being outdated, these terms are also inaccurate. There are more than 100 countries that fit the label of “Third World,” but they have vastly different levels of economic stability. Some are relatively poor, but many are not. For example, lumping Botswana and Rwanda into the same category does not make much sense because the average income per capita in Botswana is nine times larger than in Rwanda. Nowadays, social scientists sort countries into groups based on their specific levels of economic productivity. To do this, they use the Gross Domestic Product (GDP), which measures the total output of a country, and the Gross National Income (GNI), which measures GDP per capita (World Bank, n.d.). Anew and simpler classification, North-South, was created as Second World countries joined either the First World or the Third World. First World countries, such as the United States, Canada, Western Europe, and developed parts of Asia are regarded as the “Global North,” while the “Global South” includes the Caribbean, Latin America, South America, Africa, and parts of Asia. These countries were used to be called the Third World during the Cold War (Reuveny & Thompson, 2007). By noting that countries are south of 30 degrees north latitude, Chapter 2: The Global Eccthey are able to say that these areas share common problems and issues having to do with ‘ ith economy and politics. The terms “Global North” and “Global South” bout the common issues, | a 4 re a way for countries in the South to make a stand al throughout the world. . ; problems, and even causes in order to have equality all These distinctions point largely to racial inequality, specifically between the vie and the White. According to Ritzer (2015), “At the global level, whites are disproportionately in the dominant North, while blacks are primarily in the south; although thisis changing with South-to-North migration” (p.266)- Incther words, and the Global South are shaped by the economic differences between pave always possessed # racial the differences between the Global North migration and globalization. Nevertheless, the wealthy Global North and poor: Global South character” (Winant, 2001, P- 131). The Global City ‘The rural-urban differentiation has a sig red North-South relations tural production have been 2 (McMichael, 2007): Int rtand become increasingly North. Consequently, this displacement of local fal agriculture replaces e also altered. Rural globalization. nificant relationship t iculture. For in agri tered due to the Globalization has deeply alter his scenario, instance, the relations of agricul rise of global agribusiness and factory farms the South produces non-traditional products for expo! dependent on industrialized food exports from the a replacement of the s well as the staple diet a ted out that as commerci social production ar migration. leads to F farmers. Schlosser (2005) point local provisioning, the relations of exposed to low prices and mass .e concept of global cities to des and Tokyo as economic cent: categorized as such based on economies are sassen (1991) used tht centers of New York, London, ‘over the world’s political economy. World cities are global reach of organizations found in them. Not only are there inequalities there also exists inequalities within each city (Beaverstock following Castells (2000), these cities can be seen as cribe the three urban ers that exert control the between these cities, et al., 2002). Alternatively, important nodes in a variety of global networks. Although cities are major beneficiaries of globalization, Bauman (2003) claimed that they are also the most severely affected by global problems. Therefore, the city faces peculiar political problems, wherein it is often fruitless!) seeking to deal locally with global problems and “local politics has become hopelessly overloaded” (p. 102). @ The Contemporary Worldclot ee eae —eoaa€,, 1. What is the impact of global flows on the global South? Examine the gap between rural and urban areas across the globe. How is that gap affected by globalization? a 3 What do you think is the impact of urbanization and the rise of global City on the agricultural sector? This is a debate activity which intends to show the stance of the students regarding economic globalization, Argue based on this statement: “Global free trade has done more harm than good.” Theories of Global Stratification For much of human history, all of the societies on earth were poor. Poverty was the norm for everyone but obviously, that is not the case anymore. Just as you find stratification among socioeconomic classes within a society like the Philippines, you would also see across the world a Pattern of global stratification with inequalities in wealth and power between societies. So what made some Parts of the world develop faster, economically speaking, than others? We may draw answers by looking at the different theories of global stratification. Modernization Theory One of the two main explanations for global stratification is the modernization theory. This theory frames global stratification as a function of technological and cultural differences between nations. It specifically pinpoints two historical events that contributed to Western Europe developing at a faster rate than much of the rest of the world. The first eventis known as the Columbian Exchange. This refers to the spread of goods, technology, education, and diseases between the Americas and Europe after Christopher Columbus's so-called “discovery of the Americas.” This exchange worked out well for the European countries. They gained agricultural staples, like potatoes and tomatoes, which contributed to population growth and provided new opportunities for trade, while also strengthening the power of the merchant class. The Columbian Exchange worked out much less well, however, for Native Americans whose populations Chapter 2: The Global Eccw eee my i diseases brought from Europe ts estimated that.in the 150 teh rs ‘olumbus’s first trip, over 80% of the Native American population Jue to diseases such as smallpox and measles. evolution in the eighteenth like steam power and ines and The second historical event is the Industrial Re and nineteenth centuries. This is when new technologies, mechanization, allowed countries to replace human labor with machi increase productivity. The Industrial Revolution, at first, only benefited the wealthy in Western countries. Industrial technology was very productive that it gradually began to improve standards of living for everyone. Countries that industrialized in the eighteenth and nineteenth centuries saw massive improvements in their standards of living and countries that did not industrialize lag behind- affluence could be attained not take hold everywhere? dition and Modernization theory rests on the idea that by anyone. But why did the Industrial Revolution Modernization theory argues that the tension between tra technological change is the biggest barrier to growth. A society that is more steeped in family systems and traditions may be less willing to adopt new technologies and the new social systems that often accompany them. answer goes back to sociologist Max rk ethic, The Protestant Reformation nted way of life in which financial d communalism. This Why did Europe modernize? The Weber's ideas about the Protestant wo! primed Europe to take on 2 progress-orie! success was a sign of personal virtue. Individualism replace is the perfect breeding ground for modernization. walt Rostow’s Four Stages of Modernization ing to American economist Walt Rostow, modernization in the West in four stages. First is the traditional stage. ctured around small, local communities with Because these societies have Accordi took place, as it always tends to, This refers to societies that are stru production typically being done in family settings. limited resources and technology, most of their time is spent on laboring to produce food, which createsastrict social hierarchy. Examples of these are feudal Europe or early Chinese dynasties. Tradition rules how a society functions: what your parents do is what their parents did, and what you will do when you grow up, too. But as people begin to move beyond doing what has always been done, society moves to Rostow’s second stage—the take-off: stage. People begin to use their individual talents to produce things beyond the necessities. This innovation creates new markets for trade. In turn, greater individualism takes hold and social status is more closely linked with material wealth. antemporary Worldiological maturity, bear fruit in the and more push for chooling, Next, nations begin what Rostow called the drive to techn in which technological growth of the earlier periods begins to form of population growth, reductions in absolute poverty levels, diverse job opportunities. Nations in this phase typically begin tO social change along with economic change, like implementing basic 5 for everyone and developing more democratic politcal systems. The last st@B° is known as high mass consumption. It is when your country is big enough that production becomes more about wants than needs. Many of these countries put social support systems in place to ensure that al of their citizens have access to basic necessities. Modernization theory, in general, argues that if you invest capital in better technologies, they will eventually raise production enough that there will be more wealth to go around and overall well-being will go up. Furthermore, rich countries can help other countries that are still growing by exporting their technologies and things, like agriculture machinery, information technology, as well as providing foreign aid. Critics of modernization theory argue that, in many ways, it is just a new name for the idea that capitalism is the only way for a country to develop. These critics point out that even as technology has improved throughout the world, a lot of countries have been left behind. They also argue that modemization theory sweeps a lot of historical factors under the rug when it explains European and North American progress. Countries like the United States and the United Kingdom industrialized from a position of global strength during a period when there were no laws against slavery or concerns about natural resource depletion. Some critics also point out that Rostow’s markers are inherently Eurocentric, putting an emphasis on economic progress, even though that is not necessarily the only standard to aspire by every nation. After all, economic progress often includes downsides, like the environmental damage done by industrialization and the exploitation of cheap or free labor. Finally, critics of modernization theory also see it as blaming the victim. In this view, the theory essentially blames poor countries for not being willing to accept change, putting the fault on their cultural values and traditions rather than acknowledging that outside forces might be holding back those countries. This is where the second theory of global stratification comes in. Dependency Theory and the Latin American Experience Starting in the 1500s, European explorers spread throughout the Americas, Africa, and Asia, claiming lands for Europe. At one point, the British Empire covered Chapter 2: The Global Ectabout on cea ee The Unfted States, which began as colonies, soon Gann tie Phippines the sceeetaley and took control of Haiti, Puerto Rico, éclonialiem, cane he awallan Islands, and parts of Panama and Cuba. With trateailintie dane exploitation of both natural and human resources. The rade followed a triangular route between Africa, the American and Caribbean colonies, and Europe. Guns and factory-made goods were sent to africa in exchange for slaves, who were sent to the colonies to produce goods like cotton and tobacco, which were then sent back to Europe. As the slave trade died down in the mid-nineteenth century, the point of colonialism came to be less about human résources and more about natural resources. However, the colonial model kept going strong. In 1870, only 10% of Africa was colonized. By 1940, only Ethiopia and Liberia were not colonized. Under colonial regimes, European countries took control of land and raw materials to funnel wealth back to the West. Most colonies lasted until the 1960s and the last British colony, Hong Kong, was finally granted independence in1997- questions about international tries in the world as because these After the Second World War, there were many relations. One of those questions was “why are many coun’ traditional answer to the question w: olicies or their governments ars, however, are critical of not developing?” The countries are not pursuing the right economic pr are authoritarian and corrupt. Latin American schol that answer and are intrigued by their region’s underdevelopment (Sanchez, 2014). Dependency theory was a product of this experience. Dependency is the condition in which the development of the nation-states of the South contributed to a decline in their independence and to an increase in economic development of the countries of the North (Cardoso and Felato, 1979). In addition, it argues that liberal trade causes greater impoverishment, not economic improvement, to less developed countries (Toye, 2003). Trade protectionism through import substitution is the key to self-sustaining path to development, not liberal trade or export. In other words, rather than focusing on what poor countries are doing wrong, dependency theory focuses on how poor countries have been wronged by richer nations. It further argues that the prospects of both wealthy and poor countries are inextricably linked. In addition, it argues that in a world of finite resources, we cannot understand why rich nations are rich without realizing that those riches came at the expense of another country being poor. In this views global stratification starts with colonialism.prebisch Dependency theory was initially developed by Hans Singer and Se ee in the 1950s and has been improved since then. The two main sub-t! ural the North American Neo-Marxist approach and the Latin American strus sae approach (Sanchez, 2014). The terms “core nations” and “peripheral natio are at the heart of dependency theory. Peripheral nations are countries that are less developed and receive an unequal distribution of the world’s wealth. Core countries, on the other hand, are more industrialized nations who receive the majority of the world’s wealth, Although generally divided into core or Peripheral, dependency theorists recognize that there are a number of different Kinds of states in the world (Grosfoguel, 2000). Another common assumption of the theory is that “even after de-colonization, there are still important ties between the developed and less developed countries, which mainly consist in the exploitation of Peripheral natural resources and workforce by the center” (Anton, 2006, p. 2). Dependency theorists saw that the development of peripheral nations is stagnant because of the exploitative nature of the core nations (Ferraro, 2008). Less developed periphery countries are said to primarily serve the interests of the wealthier countries and end up having little to no resources to put toward their own development. The theory points out that the economies of periphery countries rely on manual labor and to the export of raw materials to core nations. The core countries then process these raw materials and sell them at a much higher price. Some of these manufactured 8oods go right back to the periphery countries from which the raw materials came. Periphery nations end up spending more money on the processed goods. Their small economies may also rely on core nations for medical and nutritional aid. The dependency theory describes a vicious cycle that enforces a hierarchy of nations across the globe. Some countries were not developing around the world because the international system was actually preventing them from doing so. Andre Gunder Frank (1969) espoused the North American Neo-Marxist approach. He contended the idea that less developed countries would develop by following the path taken by the developed countries. Developed countries were undeveloped in the beginning but not underdeveloped. This means that the path taken by the developed countries does not guarantee the same fate for the underdeveloped countries. Frank also rejected the idea that internal sources cause a country’s underdevelopment; rather, it is their dependency to capitalist system that causes lack of development.A " Latin pecan the structuralist approach, was developed mainly by accounting for Latin a . Palma (1978) noted that chief among the arguments an one ean mmerican underdevelopment was the “excessive” reliance ino: a ary commodities, which were the object of fluctuating prices eee rm and a downward trend in relative value in the long haul. Studies y ans Singer documented a secular deterioration in the terms of trade of Latin American countries, whereas Presbich can be credited for explaining the factors underlying this downward trend (Sanchez, 2014) In his status as head of the UN's Economic Commission for Latin America (ECLA), Prebisch's ideas came to have far-reaching political influence and profound policy implications. As 2 result of the influence of structuralist thought, most Latin American countries adopted strategies nominally conducive to autonomous, self-sustaining development (Seers, 1981). In essence, they sought to diversify exports and accelerate industyialization through import substitution. High tariff walls Wer” tobe erected that would reduce the region’s dependence on foreign manufactures, and thus onthe developed North. ails of development foundations of the thors in this the technical det: .d Faletto set the ncy theory. For au While Raul Prebisch focuses more on economics, other authors like Cardoso an\ historical-structural variant of the depende tradition, dependency is not a general theory of underdevelopment, but rather a “methodology for the analysis of concrete situations of dependency” (Cardoso & Faletto, 1979, P- 16). They also take into ‘account political and sociological issues (Anton, 2006). Cardoso and Faletto (1979) believed that Latin American ‘economies were the results of capitalist expansion in the United States and “The idea of dependence refers to t! the economic and political system can exist and function in its connections with the world productive structure” (p. 18). In other words, the very use of the term “dependency” was used to underscore the extent to which the economic and political development of poor countries was conditioned by the global economy, whose center of gravity was located in the developed nations. This variant of the dependency school, however, did not just focus on the asymmetrical relations between countries. It also held that dependency was perpetuated by the ensemble of ties among groups and classes both between and within nations (Sanchez, 2014). This is the concept of “linkage.” In Dependencia y Desarrollo, the Europe. authors describe it thus: We conceive the relationship between external and internal forces as forming a complex whole whose structural links are not based on mere external forms of exploitation and coercion, but are rooted in coincidences of interests between local dominant classes and international ones... (Cardoso and Faletto, 1979, p.16)- ‘ontemporary World he conditions under which aloneIn fact, this is one of the concepts that most disting structural version of dependency from previous ones: “tl interest networks—business, technocrats, the military, the middleclass bind the dynamics of local political and economic processes t materi political interests in the industrialized world” (Sanchez, 2014, P: 4). This v" saw development as historically open-ended and allowed for the possibility that the nature of dependent relations could change over time. ial and ersion The Modern World-System This history of colonialism inspired American sociologist Immanuel Wallerstein model of what he called the capitalist world economy. Wallerstein described high-income nations as the “core” of the world economy. This core is the manufacturing base of the planet where resources funnel in to become the technology and wealth enjoyed by the Western world today. Low-income countries, meanwhile, are Wallerstein called the “periphery,” whose natural resources and labor support the wealthier countries, first as colonies and now by working for multinational corporations under neocolonialism. Middle-income countries, such as India or Brazil, are considered the semi-periphery due to their closer ties to the global economic core. In Wallerstein’s model, the periphery remains economically dependent on the core in a number of ways, which tend to reinforce each other. First, poor nations tend to have few resources to export to rich countries. However, corporations can buy these raw materials cheaply and then process and sell them in richer nations. As a result, the profits tend to bypass the poor countries. Poor countries are also more likely to lack industrial capacity, so they have to import expensive manufactured goods from richer nations. All of these unequal trade patterns lead to poor nations owing lots of money to richer nations and creating debt that makes it hard to invest in their own development. In sum, under dependency theory, the problem is not that there is a lack of global wealth; it is that we do not distribute it well. Just as modernization theory had its critics, so does dependency theory. Critics argue that the world economy is not a zero-sum game—one country getting richer does not mean other countries are getting poorer. Innovation and technological growth can spill over to other countries, improving all nations’ well-being and not just the rich. Also, colonialism certainly left scars, but it is not enough, on its own, to explain today’s economic disparities. Some of the poorest countries in Africa, like Ethiopia, were never colonized and had very little contact with richer nations. Likewise, some former colonies, like Singapore and Sri Lanka, Chapter 2: The Global Ectnow have ishi vecidiee aoe eae In direct contrast to what dependency theory nations helps and do not en that, nowadays, foreign investment by richer narrowly focused: It pol urt poorer countries. Dependency theory is also very vies ‘i pe! ints the finger at the capitalist market system as the sole reget ny ation, ignoring the role of things like how culture and political play in impoverishing countries. There is also no solution to global poverty that comes out of dependency theory—most dependency theorists just urge poor nations to cease all contact with the rich nations or argue for a kind of global socialism. However, these ideas do not acknowledge the reality of the modern world economy, which make them not very useful for combating the real pressing problem of global poverty. n of world trade have The growth of the world economy and expansiol st nations fe, with even the pore sed trade between countries, le Agreement (NAFTA) of free trade against coincided with rising standards of living worldwid almost tripling in the last century. But with incre} he North American Free Trad trade agreements such as t pitting the benefits have become a major point of debate, the cost of jobs within a country’s borders. ation, By learning about economic globaliz weare be able to know about the ut solutions to issues and debates about it. We are also able to think critically abou the various problems brought by globalization. Questions about how to deal with hough there is some good global stratification are certainly far from settled, alt! news: it is getting better. The share of people globally living on less than the $25 per day has more than halved since 1981 going from 52% to 22% as of 2008. Yet Smee In the case of the Philippines, how much do you think are we involved in the modern world-system? What do you think are the advantages and disadvantages of being a part of such? 2. How can we “upgrade” our economy given the strength of the global especially the giant economies like the United States and 1 economy, Japan? 3. How do we examine economic globalization considering our colonial history?Introduction The social institution that has one of the biggest impacts on society is the economy. You might think of the economy in terms of number—number of unemployed, gross domestic product (GDP), or whatever the stock market s doing todey- while we often talk ial institution about it in numerical terms, the economy is composed of people. It is the soci consumption, and trade of goods in the society- ‘There are made, exchanged, and used. Think about capitalism or that organizes all production, \d the economic revolutions that created them— many ways in which products can be socialism. These economic systems—an' shape the way people live their lives. Economic systems vary from one socie production typically splits into three sectors. from natural environments. Workers like farmers 0! The secondary sector gains the raw materials and transforms thet goods. This means, for example, that someone from the primary sector extracts oil from the earth then someone from the secondary sector refines the petroleum to gasoline. Whereas, the tertiary sector involves services rather than goods. It offers services by doing . things rather than making things. Thus, economic system is more complicated or at least, more sophisticated than the way things used to be for much of human history. in any given economy, The primary sector extracts raw materials r miners fit well in the primary sector: m into manufactured ty to another. But | This chapter will show the contributions of the different financial and economic institutions that facilitated the growth of the global economy. The history of the global market will be discussed by looking at th dynamics of multinational corporations t e different economic revolutions. The growth and hat are emerging in today’s world economy will also be examined. International Financial Institutions ave been brought closer together by globalization. It is reflected World economies hi the rest of the world catches a in the phrase “When the American economy sneezes, cold.” But it is important to remember that it is not only the economy of the United States but also other economies in the world that have a significant impact on the global market and finance. For instance, the financial crises experienced by Russia and Asia affectedA eater the world economy. The strength of a more powerful economy brings 8 have effect on other countries, In the same manner, crises on weaker economies fs less effect on other countries. For example, Argentina’s serious financial crisis" the late 1990s and early 2000s had a comparatively small impact on the global economy. Although countries are heavily affected by the gains and crises in the world economy, the organizations that they consist also contribute to these events. The following are the financial institutions and economic organizations that made countries even closer together, at least, when it comes to trade. The Bretton Woods System The major economies in the world had suffered because of World War |, the Great Depression in the 1930s, and World War ||. Because of the fear of the recurrence of lack of cooperation among nation-states, political instability, and economic turmoil (especially after the Second World War), reduction of barriers to trade and free flow of money among nations became the focus to restructure the world economy and ensure global financial stability (Ritzer, 2015). These consist the background for the establishment of the Bretton Woods system. In general, the Bretton Woods system has five key elements. First element is the expression of currency in terms of gold or gold value to establish a par value (Boughton, 2007). For instance, a 35 U.S. dollar Pegged by the United States per ounce of gold is the same as 175 Nicaraguan cordobas per ounce of gold. The exchange rate therefore would be 5 cordobas for 1 dollar. Another element is that “the official monetary authority in each country (a central bank or its equivalent) would agree to exchange its own currency for those of other countries at the established exchange rates, plus or minus a one-percent margin” (Boughton, 2007, pp. 106-107). The third element of the Bretton Woods system is the establishment of an overseer for these exchange rates; thus, the International Monetary Fund (IMF) was founded. Eliminating restrictions on the currencies of member states in the international trade is the fourth key element. The final element is that the U.S. dollar became the global currency. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) According to Peet (2003), global trade and finance was greatly affected by the Bretton Woods system. One of the systems born out of Bretton Woods was the General Agreement on Tariffs and Trade (GATT) that was established in 1947 (Goldstein et al. 2007). GATT was a forum for the meeting of representatives from 23 member countries. It focused on trade goods through multinationaltrade a; out of peleaitaa conducted in many “rounds” of negotiation. However, “it was fe Uruguay Round (1986-1993) that an agreement was reached to create | the World Trade Organization (WTO)” (Ritzer, 2015, p. 60)- The WTO headquarters is located in Geneva, Switzerland with 152 member | states as of 2008 (Trachtman, 2007). Unlike GATT, WTO is an independent multilateral organization that became responsible for trade in services, Non tarrifFrelated barriers to trade, and other broader areas of trade liberalization. An example cited by Ritzer (2015) was that of the “differences between nations inrelation to regulations on items as manufactured goods or food. A given nation can be taken to task for such regulations if they are deemed to be an unfair restraint on the trade in such items” (p. 61). The general idea where the wie is based was that of neoliberalism. This means that by reducing or eliminating barriers, all nations will benefit. 9 WTO. One is that trade barriers | There are, however, significant criticisms t ‘ created by developed countries cannot be countered enough by WTO, especially in agriculture. A concrete case was that the emerging markets in the Global Sout made the majority in the WTO, but they suffered under the industrial nations which supported the agriculture with subsidies. Grain prices increased and food riots occurred in many member states of WTO, like Mexico, Egypt, and Indonesia in 2008. Aside from issues in agricultural sector, the decision-making processes were heavily influenced by larger trading powers, in the so-called Green Room, while excluding smaller powers in meetings. Lastly, Ritzer (2015) also pointed out that International Non-Government Organizations (INGOs) are not involved, leading to the staging of “regular protests and demonstrations against the WTO” (p-61). The International Monetary Fund (IMF) and the World Bank IMF and the World Bank were founded after the World War lI. Their establishment was mainly because of peace advocacy after the war. These | institutions aimed to help the economic stability of the world. Both of them are | basically banks, but instead of being, started by individuals like regular banks, they were started by countries. Most of the world’s countries were members of the two institutions. But, of course, the richest countries were those who handled most of the financing and ultimately, those who had the greatest influence. IMF and the World Bank were designed to complement each other. The IMF’s main goal was to help countries which were in trouble at that time and | who could not obtain money by any means. Perhaps, their economy collapsed or their currency was threatened. IMF, in this case, served as a lender or a last resortloaned 93 for countries which needed financial assistance. For instance, Yemen milion dollars from IMF on April s, 2012 to address its struggle with terete: The World Bank, in comparison, had a more long-term approach. Its main 8° t revolved around the eradication of poverty and it funded.spectfic projects oe helped them reach their goals, especially in poor countries. An example of Suc! istheir investment in education since 1962 in developing nations like Bangladesh, Chad, and Afghanistan, Unfortunately, the reputation of these institutions has been dwindling, mainly due to practices suchas lending the corrupt governments or even dictators and imposing ineffective austerity measures to get their money back. 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, Iraq, Kuwait, Iran, and Venezuela. They are stil 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 in keeping 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) 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. NAFTA helps in developing and expanding world trade by broadening international cooperation. It also aims to increase Chapter 3: Market Intecor i . i + Operation for improving working conditions in North Americ® by reducing barriers to trade as it expands the markets of the three countries. ing jobs from developed developed nations ico, producer prices their farms. During ns, about 25% of The creation of NAFTA has caused manufactur nations (Canada or the United States) to transfer to less (Mexico) in order to reduce the cost of their products. In Mexi dropped and some two million farmers were forced to leave this time, consumer food prices rose, causing 20 million Mexicat their population, to live in “food poverty.” on US GDP. It has become ne can argue that NAFTA e United States because The free trade, however, gave a modest impact 4127 billion richer each year due to trade growth. O was to blame for job losses and wage stagnation in th posaie "rms had forced many US: fms to relocat Mexico. This is because developing nations have less government regulations and cheaper labor. This is called outsourcing. ‘As an example, the United States 000 jobs to Mexico in 2010. ‘As for Canada, 76% of Canadian exports 80 to the United States and about a quarter ofthe jobs in Canada are dependent insome way on the trade with the United States. This means that if NAFTA changes or is eradicated, it would be devastating for Canada’s economy. competition from Mexica outsourced approximately 791, tive consequences. It lowered opened up new opportunities for small- and medium- ish a name for itself, quadrupled trade between the three countries, and created five million US. jobs. some of the negative effects, however, include excessive pollution, loss of more than 682,000 manufacturing jobs, exploitation of workers in Mexico, and moving Mexican farmers out of business. Generally, NAFTA has its positive and nega prices by removing tariffs, sized businesses to estab! History of Global Market Integration Before the rise of today's modern economy, people only produced for their family. Nowadays,economy demands the different sectors to work together in order to produce, distribute, and exchange products and services. What caused this shift in the way people produce for their needs? In order to understand this, we will be going back in time, 12,000 years ago. The Agricultural Revolution and the Industrial Revolution Sih Has big economic change was the Agricultural Revolution (Pomeranz, DS ron people learned how to domesticate plants and animals, they lat it was much more productive than hunter-gatherer societies. This intemporary Worldieties build surpluses» 1 food. This, in turn, de networks, and became the new agricultural economy, Farming helped soc! meaning, not everyone had to spend their time producin} led to major developments like permanent settlements, tra population growth, The second major economic revolution is the Industrial Revolution of the 1800s. With the rise of industry came new economic tools, like steam engines manufacturing, and mass production, Factories popped up and changed how work functioned. Instead of working at home where people worked for their family by making things from start to finish, they began working as wage laborers and then becoming more specialized in their skills. Overall, productivity went uP, standards of living rose, and people had access to a wider variety of goods due to mass production, However, every economic revolution comes with economic casualties. The workers in the factories—who were mainly poor women and children—worked in dangerous conditions for low wages. Asa result, nineteenth-century industrialists were known as robber barons—with more productivity came greater wealth, but also greater economic inequality. In the late nineteenth century, labor unions began to form. These organizations of workers sought to improve wages and working conditions through collective action, strikes, and negotiations. Inspired by Marxist principles, labor unions gave way for minimum wage laws, reasonable working hours, and regulations to protect the safety of workers. Capitalism and Socialism There were two competing economic models that sprung up around the time of the Industrial Revolution, as economic capital became more and more important to the production of goods. These were capitalism and socialism. Capitalism is a system in which all natural resources and means of production are privately owned. It emphasizes profit maximization and competition as the main drivers of efficiency. This means that when one owns a business, he needs to outperform his competitors if he is going to succeed. He is incentivized to be more efficient by improving the quality of one’s product and reducing its prices. This is what economist Adam Smith in the 1770s called the “invisible hand” of the market, The idea is that if one leaves a capitalist economy alone, consumers will regulate things themselves by selecting goods and services that provide the best value. ‘ In practice, however, an economy does not work very well if itis left completely on autopilot. There are many sectors where a hands-off approach can lead to what economists call market failures, where an unregulated market ends up allocating goods and services inefficiently. A monopoly, for example, is Chapter 3: Market intea Me failure. whey a company has no competition for customers, it ge higher prices without worrying about losing customers. AS allocations go, monopoly becomes inefficient atleast on the consumer end. In situations like these, a government might step in and force the company to break up into smaller companies to increase competition. Market failures like this are the reasons most countries are not purely capitalist societies. For example, the United States’ federal and state governments own and operate @ number of businesses, like schools, the postal service, and the military. Governments also set minimum wages, create workplace safety laws, and provide social support programs like unemployment benefits and food stamps. m. Ina socialist Whereas, government plays an even larger role in socialist * hip. It rejects system, the means of production are under collective owners capitalism's private property and hands-off approaches. Instead, in socialism, property is owned by the government and allocated to all citizens, not only emphasizes collective goals, those with the money to afford it. Socialism expecting everyone to work for the common good and placing a higher value on meeting everyone’s basic needs than on individual profit. When Karl Marx first wrote about socialism, he viewed it as a stepping stone toward communism, m in which all members of a society are socially layed out in the countries that have modeled Cuba, North Korea, China, and the USSR. Why? society, the a political and economic syste equal. in practice, this has not p their economies on socialism, like Marx hoped that as economic differences vanished in communist government would simply wither away and disappe2t, but that never happened. ifanything, the opposite did. Rather than freeing the workers—in Marxist terms, the proletariat—from inequality, the massive power of the government in these states gave enormous wealth power and privilege to political elites. The result is the retrenchment of inequalities along political—rather than strictly economi lines. ‘At the same time, capitalist countries economically outperformed their socialist counterparts contributing to the unrest that eventually led to the downfall of the USSR. Before the fall of the Soviet Union, the average output in capitalist countries was about $13,500 dollars per person, which was almost three times than in the Soviet countries. But there are downsides to capitalism, too, namely, greater income inequality. A study of European capitalist countries and socialist countries in the 1970s found that the income ratio between the top 5% and the bottom 5% in capitalist countries was about 10 to 1; whereas, in socialist countries, it was 5 to 1. Those two models are not the end of the story because we are living in the middle of the economic revolution that followed the Industrial Revolution.The Information Revolution duced ; reduce Ours is the time of the information revolution. Technology has Y omy the role of human labor and shifted it from a manufacturing based °Co than to one that is based on service work and the production of ideas rather 0°" ters goods. This has had a lot of residual effects on our economy. COMPUTEN? © other technologies are beginning. to replace many jobs: because of automation or outsourcing jobs offshore. We also see the decline in union membership- Nowadays, most unions are for public sector jobs, like teachers. What do jobs in a post-industrial society look like? Agricultural jobs, which once were a massive part of the Philippine labor force, have fallen drastically over the last century. In other countries such as the United States, manufacturing, jobs, which were the lifeblood of their economy for much of the twentieth century, have declined in the last 30 years. The U.S. economy began with their many workers serving in either the primary or secondary economic sectors. But today, much of their economy is centered on the tertiary sector or the service industry. The service industry includes every job such as administrative assistants, nurses, teachers, and lawyers. This is a big and diverse group because the tertiary sector, like all the economic sectors we have been discussing, is defined mainly by what it produces rather than what kinds of jobs it includes. Sociologists have a way of distinguishing between types of jobs, which is based more on the social status and compensation that come with them. These are the primary labor market and the secondary labor market. The primary labor market includes jobs that provide many benefits to workers, like high incomes, job security, health insurance, and retirement packages. These are white-collar professions, like doctors, accountants, and engineers. Secondary labor market jobs provide fewer benefits and include lower-skilled jobs and lower-level service sector jobs. They tend to pay less, have more unpredictable schedules, and typically do not offer benefits like health insurance. They also tend to have less job security. What is next for capitalism and socialism? No one knows what the next economic revolution is going to look like. Nowadays, a key part of both our economic and political landscape is corporations. Corporations are defined as organizations that exist as legal entities and have liabilities that are separate from its members. They are their own thing. More and more these days, corporations are operating across national boundaries which means that the future of the Philippine economy—and most countries’ economies—will play out on a global scale,ided ‘to close Scenario: ided nose work were A multinational corporation dec! jnfortunately, your father is one ofits many employees Wie" has been terminated. However, he could still be employed if toaccept the offer to move or relocate to another country. ds Scenario E: The global financial crisis has affected the investment fun of your mother that she can use for her retirement. 2. How did you decide for each scenario? What are the pros and cons that you list down before you came up with the final judgment? Share with the class your responses to each scenario. . Global Corporations The increase in international trade has both created and been supported by international regulatory roups, like WTO, and transnational trade agreements, like NAFTA. There is not a single country that is completely independent. All are dependent to some degree on international trade for their own prosperity. Without international trade, there would be no need for international regulatory groups. Without the international regulatory groups, international trade at the current massive scale would be impractical. The trade regulatory groups and agreements regulate the flow of goods and services between countries. They reduce tariffs, which are taxes on imports, and make customs procedures easier. This makes trading across national borders much more feasible. These international trade agreements often benefit private industries the most. Companies can produce their goods and services across many different countries. For instance, you can have a backpack that was designed in the United States but the materials came from China, and it was Put together in Mexico before it was shipped back to the United States to be sold. These companies that extend beyond the borders of one country are called multinational or transnational corporations (MNCs or TNCs). They are also referred to as global corporations. They intentionally surpass national borders and take advantage of opportunities in different countries to manufacture, distribute, Market, and sell their products. Some global corporations are ubiquitous, like McDonald’s or Coca-Cola, and yet, they still market themselves as American companies. Others can be surprising like General Electric, which is based in the United States but has more than half of its business and employees working in other countries. Another example is Ford Motor Company, the classic American car company, headquartered in Michigan that manufactures cars worldwide.jobal economy, Transnati . ‘onal corporations have a significant role in the gl They influence le hav the sane Breater production advantages than an entire nation. lobbyist: my and politics by donating money to specific political campaigns or ists. They can even influence the global trade laws of the international regulatory groups. Som Global corporations often locate their factories in countries which can Provide the cheapest labor in order to save up for expenses in the making of a product. Asa result, developing nations will provide incentives, like tax-free trade zones or cheap labor. The companies will set up shop in their country in hopes of bringing jobs and industry to beleaguered agricultural areas. This promotes more rapid advances in the developing nation because of the ideas and innovations brought over from the industrialized nations. It also ma world more interdependent, which minimizes the potential for conflict. In the end, however, these incentives often hurt the working population of the developing nation. The upper classes may benefit from the business of these factories are exploited as their wages corporations but the people working in the are cut. In addition, they are often prohibited from unionizing. It can even’ result. long working hours, substandard wages, and poor in one country become too restrictive to ry to anew country, leaving widespread developing nations in sweatshop conditions wit working conditions. If the labor laws i the TNCs, they can just move their facto unemployment in their wake. Setting up factories in these may also hurt the core country where the TNC is based because many potential jobs are being sent abroad. The same thing happens when companies outsource their labor to other countries, Outsourcing has been enabled by technological advances, allowing immediate communication across the world and the ease of transporting people, goods, and information. When companies find people in other countries willing to work for a lower wage, they will often employ them, which is good for the company because they save money, and it is good for the countries because they now have ajob. But it also means that the people in other c country are losing jobs and having difficulty finding new ones. people in the core There seems to be a lot of negative effects of globalization from transnational corporations. Trade does promote the self-interested agendas of corporations and give them autonomy. The global corporations also influence politics and allow workers to be exploited. There are, however, positive effects. ‘These include better allocation of resources, lower prices for products, more employment worldwide, and higher product output. The changes a country experiences from international trade are not only economic. Many of the cultural changes are as important and sometimes, even more obvious than the e i i ; ee eee ree as oe the nation can experience. As asier and more widespread, more than just goods antemporary World kes nations around the: |i i ssed and services are exchanged, Cultural practices and expressions are also pa: between nations, spreading from group to group. This is called diffusion. aoe and practices spread from where they are well known and frequently apparent to places where they are new and not often observed. In the past, exploration, military conquests, missionary work, and tourism provided the means for the trading of ideas. But technology has exponentially increased the speed of diffusion. Nowadays, mass media and the Internet allow the transfer of ideas almost instantaneously. This is most commonly seen in the transmission of scientific knowledge and the spreading of the North American culture, which dominates thé Internet. International trade and global corporations, along with the Internet and more global processes, contribute to globalization because people and corporations bring their own beliefs, their traditions, and their money with them when they interact with other countries. These ideas and capital can then be incorporated in other countries, and thus, change the cultures and economies of these foreign nations. Process Questions a 1. Analyze the “global” nature of multinational corporations. 2. Do you think the positive effects of multinational corporations outweigh the negative effects? Why or why not? 3. | What do you think are the ways to lessen, if not eliminate, the negative consequences of multinational corporations? The Corporation is an award-winning documentary film that examines the modern-day corporation. It assesses the corporation as a person and provides criticisms to corporate business practices. It also describes the contemporary corporation with a clinically diagnosed psychopath. This film will serve as a learning experience for you. Since corporations are large entities, this documentary can help you appreciate the nature of these organizations through a simple and more understandable manner.a Pet nena PTER 4 THE GLOBAL INTERSTATE SYSTEM Introduction The state has traditionally been the subject of most interest to scholars of global “the institution that creates warfare and sets economic unit that has authority over its her countries, It is assumed Politics because it is viewed as policies for a country.” Furthermore, the state is a political own affairs. In other words, its borders are recognized by ot ear that whoever is in charge of those borders has the right to determine exactly what is going to happen in their country. The Treaty of Westphalia of 1648 established the notion of the nation-state and the idea of state sovereignty. 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. some scholars suggest a decrease in the power of the state and With globalization, -ors include multinational that other actors are actually becoming more powerful. These act corporations and global civil society organizations, like the Red Cross, that cross national boundaries. Is the idea of the nation-state outdated in the contemporary world? If so, what is it that.we need to think about as “replacements”? In this chapter, we will look at regional alliances and worldwide organizations of states. This manifests the efforts of countries and governments in the world to cooperate and collaborate together. Next, international and regional economic bond bodies, such as IMF and the World Bank, must also be considered as they often push for neoliberal reforms in the world. The third kind of replacement to the traditional nation-state and the idea of national autonomy comes from the non-state actors. One of these is the private capital groups, including banks and groups of people, with money that can determine the well-being of people in a particular area. Multinational corporations and non-governmental organizations, such as the Amnesty International, are significant organizations that put into question the strength of national autonomy and global politics. The emergence of non-state organizations, like Al-Qaeda, ISIS, and terrorist organizations, which seek power try to depose a government and replace the system with their own ideological belief. 56) The Contemporary WorldGlobal Governance In the Twenty-First Century There Is a series of specific factors behind the emergence of ae governance. The first on the list must be the declining power of nation-states: I states themselves were “highly contingent and in flux” (Cerny, 2007, P- 854) would open the possibility of the emergence of some form of global governance to fill the void. Asecond factor is the vast flows of all sorts of things that run into and often right through the borders of nation-states. This could involve the flow of digital information of all sorts through the internet. It is difficult, if not impossible, for a nation-state to stop such flow and in any case, itis likely that such action would be politically unpopular and bring much negative reaction to the nation-state involved in such an effort, For example, China’s periodic efforts to interfere with the Internet have brought great condemnation both internally and externally. Then, there is mass migration of people and their entry, often illegally, into various nation-states. If states are unable to control this flow, then there is a need for some sort of global governance to help deal with the problem. The flow of criminal elements, as well as their products (drugs, laundered money, those bought and sold in sex trafficking, etc.), is a strong factor in the call for global governance (Levy and Sznaider, 2006). In these cases and others, there is aneed for some degree of order, some sort of effective authority, and at least some potential for the improvement of human life. These are but a few of the things that can be delivered by some form of global governance. Another set of issues that has led to calls for global governance involves horrendous events within nation-states that the states themselves either foment and carry out, or are unable to control (Nordstrom, 2004). For example, in Darfur, Sudan, perhaps hundreds of thousands have been killed, millions of people displaced, and the lives of many disrupted in a conflict that date back to early 2003. The government of Sudan and its military have been implicated in the conflict between ethnic and tribal groups and the Sudanese government has been resistant to outside interference in its internal affairs. One could even go back to WWII and argue that the Holocaust could have been prevented, or at least mitigated, had there been a viable form of global governance to put pressure on Nazi Germany and ultimately, to intervene in a more material way, perhaps militarily (Bauman, 1998). Then, there are global problems that single nation-state cannot hope to tackle on their own. One is the global financial crises and panic that sweep the world periodically, which nations are often unable to deal with on their own Chapter 4: The Global interstate {(Strange, 1 flan . 1996). Indeed, some nations (e.g, the hations of Southeast Asia) have bane en, and are being, victimized by such crkes. Unable to helP themselves, Nations are in need of assistance from some type of global governance. ; Nation-states have long struggled to deal with problems like these through various interstate systems (e.g,, alliances such as NATO), but the more recent trend is toward the development of more truly global structures and methods of dealing with various sorts of issues and problems. Effects of Globalization to Governments One of the key aspects of state sovereignty is the government. It is agroup of people who have the ultimate authority to act on behalf of a state. Each state has its own right to self-determination and that other country should not are extraordinary reasons to intervene in the affairs of that state unless there do so. Other countries must recognize sovereignty OF the right to govern one’s to itself and responsible hh state is autonomous unt who are governed. The decisions, re done through the institutions whether or ‘own territorial borders. Eacl within its own system of government to those the conflict, and the resolution of that conflict at of government, established and codified in that particular state, not through elections. Elections, especially in democratic society, provide the leadership of the state. In addition, the policy is developed and implemented in the interest of the people of a state by a specific government. A civil society within a state can also act as a counterweight or asa supplement to government. Civil society includes the private economy, educational institutions, churches, hospitals fraternal organizations, and other non-profit organizations. There have been several challenges to the government and ultimately, to state autonomy. We can divide these challenges into four: traditional challenges, challenges from national or identity movements, global economics, and global social movements. Traditional Challenges External intervention can generally be described as invasion by other countries. For example, when Saddam Hussein was the ruler of Iraq in 1990, he decided he was going to take over the oil fields of Kuwait. He invaded Kuwait and took it over. Asa result, he was dislodged by an international coalition led by the United States. These days, we can see external intervention in other forms. Russia’s external intervention into the affairs of Ukraine, a sovereign state in the post: | Contemporary WorldSoviet era, is another instance of intervention in the autonomy of the state: Russia intervenes in the affairs of people in Crimea who want to become part of Russia again even though they are part of Ukraine. Crimea declared its independence from Ukraine and re-affliated with Russia, This is a case of how there might be a national Identity within a country that is assisted by a neighboring country. Ukraine argues to have autonomy to determine the case for Crimea. As a result, there is current conflict between Ukraine, not recognizing Crimea’s sovereignty and Russia, not recognizing Ukraine’s sovereignty over Crimea. Internal political challenges can also happen. For example, after the Arab Spring in Egypt, a new coristitution was created and a government was elected. That government was more fundamentalist and rejected the notion of a plural society that included religious diversity. The military staged a coup that deposed the government in order to restore stability. Other examples include the Taliban’s efforts to control the government of Afghanistan. In Syria, the original rebellion against Assad came from the country’s own internal dissenters who wanted to replace the government even though they were also Syrian nationals. There are also regional organizations challenging state autonomy. The United Nations intervened in Sudan because of the several years of civil war. More recently in Europe, specifically in Greece, it also interfered in the Greek debt crisis. Challenges from National/Identity Movements The next challenges are part of a national identity or movement. It is important to know that a nation has cultural identity that people attached to, while a state is a definite entity due to its specific boundaries. However, different people with different identities can live in different states. For example, the Kurds reside in several different countries including Iraq, Iran, and Turkey. The Catalans live primarily in Spain but we can also find some of them in France. Scottish nationalism is another example that challenges the traditional notions of state sovereignty. In 2014, Great Britain had a vote in Scotland to decide whether Scotland was going to become its own autonomous state apart from Great Britain. They voted against it but Scotland has a significant degree of autonomy now as compared to more than two decades years ago. Global movements, such as the Al-Qaeda and ISIS, are another example of national or identity movements. In this case, they are structured around the fundamentalist version of Islam.Global Economics The third maj third major source of challenge comes from global economics. Global Sespciny demands the states to conform to the rules of free-market capitalism, overnment austerity comes from developments of organizations that cooperate cross countries, such as WTO and regional agreements, such as NAFTA, the | European Union (EU), and the Association of Southeast Asian Nations (ASEAN). Neoliberal economics or neoliberal capitalism started in the 1980s. t focuses on free trade and dismantling trade barriers. It made sure that governments did not impose restrictive regulations on corporate presence, as well as on the free flow of capital and jobs. Free trade was seen a5 the ideal or the normative belief, that is, the best economy is one where there is free trade everywhere. Laws and capital in a particular country, | standards that would interfere with the flow of including environmental regulations, were deemed to discourage economic growth. Neoliberal economics requires a state to cooperate in the global market through the free flow of capital, the privatization of services, and fiscal austerity or constraint. In turn, the government's role is diminished as it relates to the market. Neoliberal economics is seen as a threat, in general, because a state cannot protect its own economic interest as 2 sovereign state. nomic influence is the use of IMF and A specific example to expand global eco! ms in poorer country. Furthermore, the World Bank in forcing government refon ent efforts focused on expanding free trade and the regional economic developm developed countries put their factories market liberalization. Businesses from and pay people to build factories and produce goods in developing countries worldwide, These corporations will sell the products in developing countries. This exacerbates rising inequality in the world. Greece is one example that explains how neoliberal economics can threaten the sovereignty of a state. It began in 1981 when Greece joined the EU. Asa larger alliance, the EU broke down all kinds of barriers among its member states, including Greece, like passports, visas, and license plates. It allowed people to travel across European borders and encouraged economic cooperation and collaboration of member states. ae Yat a Greece adopted the euro as its own currency and got rid of e drachma. The government of i improvements, eel linked to tenho cece suena Greece in a large debt. Se tt Ohne ee £ ‘ ei . In 2007 and 2008, the worldwide financial crisis made reece’s economy to collapse. : Aside from high debt that burdened the government, Greece had several of ae i ) its employees struggling with pensions. Tax revenues were lower, and : sult and as a resully ‘temporary WorldGlobal Economics The third major source of challenge comes from global economics: Global economy demands the states to conform to the rules of free-market capitalism. Government austerity comes from developments of organizations that cooperate across countries, such as WTO and regional agreements, such as NAFTA, the European Union (EU), and the Association of Southeast Asian Nations (ASEAN)- eral capitalism started in the 1980s. It focuses that governments did as well as on the free e belief, Neoliberal economics or neolib on free trade and dismantling trade barriers. It made sure not impose restrictive regulations on corporate presence, flow of capital and jobs. Free trade was seenas the ideal or the normativ' that is, the best economy is one where there is free trade everywhere. Laws and standards that would interfere with the flow of capital in a particular country, ental regulations, were deemed to discourage economic sa state to cooperate in the global market rivatization of services, and fiscal austerity ’s role is diminished as it relates to the general, because @ state including environm growth. Neoliberal economics requires through the free flow of capital, the p' or constraint. In turn, the governmen market, Neoliberal economics is seen as a threat, in cannot protect its own economic interest as @ sovereign state. specific example to expand global economic influence isthe use of IMFand the World Bank in forcing government reforms in poorer country. Furthermore, the regional economic development efforts focused on expanding free trade and market liberalization. Businesses from developed countries put their factories and pay people to build factories and produce goods in developing countries worldwide. These corporations will sell the products in developing countries. This exacerbates rising inequality in the world. Greece is one example that explains how neoliberal economics can threaten the sovereignty of a state. It | began in 1981 when Greece joined the EU. Asa larger alliance, the EU broke down | all kinds of barriers among its member states, including Greece, like passports, visas, and license plates. It allowed people to travel across European borders and encouraged economic cooperation and collaboration of member states. ae erie ra tay cl improvements, largely linked to their oo sof is pe aerate Greece in a large debt. In 2007 and 2008, ie eae a aes ee trsssd'secohioty focal , the worldwide financial crisis made pse. Asi i a on from high debt that burdened the government, Greece had several of ployees struggling with pensions. Tax revenues were lower, and as arresult, | antemporary World: d which they could not pay their debts back. in 2009, their credit rating ee ey made it harder for them to pay back their debt. This led to @ series 0} sing. MF packages In Greece which meant that there was less government SPen e i balled them out from the crisis in exchange for more austerity. In cOncIt® economic crises can force government to subscribe to the terms and condition: of the global financial market and of other nations that can help them regein economic stability, Global Social Movements Finally, we have global social movements. Most of the time, they are not seenasa threat but they definitely challenge state sovereignty. Social movements aremovements of people that are spontaneous or that emerge through enormous grassroots organization. These social movements are transnational movements which means they occur across countries and across borders. Therefore, states have less control over them. For example, human rights movements create a public sentiment, value, and agenda. The idea is that there are certain rights that states cannot neglect or generally, what we call human rights. If a country decides that they are going to have a particular policy and if that Policy violates the international standard of human rights, there is a challenge to the ability of states to fully implement it. An example is the United States’ position on the death penalty. There is an international consensus, with a few dissenting countries like China, South Africa, and Russia, against the death penalty. This means that if somebody is sentenced by death penalty and somehow he is in a country around the world, there are rules against that state extraditing into the United States. The environmental movement is another example of global social movements related to public policy. A specific case is the so-called Blockadia or the state where social movements emerging in local areas fight back as a response to the controlling efforts by the apparatus of government to protect the interest of neoliberal capitalists. Consensus on women’s rights is another example in many countries. Arguably, the biggest conflict between the West and the fundamentalist Islam is over the role of women in society, as well as women’s autonomy. Rights of personal autonomy are another example and this includes issues on homosexuality, same-sex marriage, and gender equality. There is also an increased role in international organizations like the United Nations and the International Criminal Court in Hague, the role of Non-governmental, organizations like Doctors Without Borders or Amnesty International, and the role of global media. Chapter 4: The Global InterstateThe Relevance of the State amid Globalization The state isa distinctive politcal community with its own set of rules and practices and that is more or less separate from other communities. It has four elements: people, territory, government, and sovereignty. The first element of fer to a nomadic a state is a permanent population. This population does not refé people that move from one place to another in an indefinite time. This permanent presence in one location is strengthened by the second element of 2 state, a defined territory. A territory has clear boundaries. A territory is effectively controlled by the third element,, government. The government regulates relations amongits own people andwith other states. This means that the state isaformally constituted sovereign political structure encompassing people, territory, and its institutions on the one hand, and maintaining its autonomy from other states on the other hand. state. Nation refers to ies or institutions. It is ture. If we talk It is important to differentiate the idea of nation from a people rather than any kind of formal territorial boundari a collective identity grounded ona notion of shared history and cul about the Philippines as a state, we may refer to the Philippine government, the Philippine territory, and its internal and external sovereignty. If we talk about the we refer to our shared collective notion of democracy, our history, and our collective identity. In other words, the state is a political concept, while a nation is a cultural concept. States, through its formalized institutions, more of less reflect nations. This would allow states to havea certain people with their own collective identity. In turn, they should be allowed to form their own political state. This is the principle of national self-determination. Philippines as a nation, This brings us to the concept of ‘the nation-state. It is a territorially bounded sovereign institution that governs individuals sharing @ collective history, identity, and culture. In reality, it is difficult to think of any nation as having any shared national identity. The Philippines, although formally a state, has a variety of ethnic traditions. A variety of arguments are made including that nation-states continue to be the major players on the global stage (Gilpin, 2001), that they “retain at least some power in the face of globalization” (Conley, 2002, pp. 378-399), that they vary greatly in “their efficacy in the face of globalization” (Mann, 2007, p. 472); and that the rumors of the demise of the nation-state are greatly exaggerated. : Beland (2008) argued that “the role of the state is enduring—and even increasing—in advanced industrial societies” (p. 48). He saw greater demandsctive insecurity: tsourcing and threats to s such as being placed on the state because of four major sources of colle terrorism; economic.globalization, leading to problems such as Ou pressures toward downsizing, as well as the current economic crisis; national identity due to immigration; and the spread of global disease AlDs. Further, the state does not only respond to these threats, but may also exaggerate or create dangers, thereby making its citizens moreinsecure(Glassner 2000). A good example is the U.S. and British governments’ arguments prior to the 2003 war with Iraq that Saddam Hussein had weapons of mass destruction (WMDs) that posed a direct threat to the United States and United Kingdom. The United States even claimed that Iraq could kill millions by using offshore ships to lob canisters containing lethal chemical or biological material into American cities (Isikoff and Corn, 2006). The collective insecurity created by such outrageous claims helped foster public opinion in favor of invading iraq and overthrowing Saddam Hussein. The other side of this argument in support of the nation-state is that global processes of various kinds are not as powerful as many believe. For example, global business pales in comparison to business within many countries. Inaddition, some question the porosity of the nation-state by pointing, for example, to the fact that migration to other countries has declined substantially since its heights in the late nineteenth and early twentieth centuries (Gilpin, 2001). A related point is that it would be a mistake simply “to see globalization as a threat to, a constraint on, the nation-state; it can also be an opportunity for the nation-state” (Conley, 2002, pp. 378-399). For example, the demands of globalization were used as bases to make the needed changes in Australian society, specifically allowing it to move away from protectionism and in the direction of neoliberalization, to transform state enterprises into private enterprises, and to streamline social welfare. With this, the rhetoric of globalization, especially an exaggeration of it and its effects, was useful to those politicians who were hopeful of such changes.| relevant today in the era holars would argue that rs would say that you should The issue of whether or not the nation-state is stil Of globalization has gained diferent reactions. Some its role in global politics is diminishing. On the other hand, othe it still remains to be the primary actor in political affairs. In this activity, be able to point out contending views about such issue through a debate. roups—affirmative side state remains to be rel 1. Divide the class into two g) and negative side- levant amid the 2. The central issue would be: The .s of globalization. minutes to prepare thel sent their main argument: for the negative side- ents, each side will be giv processes and structures ir arguments. 3. Each side would be given 20 -s within 10 4. The affirmative side will pres minutes. The same rule applies en 2 minutes ‘After the presentation of argu™ to ask the opposing side. 6. The opposing side will have 2 minutes tO construct an answer. Then, they should be able to answer within 3 minutes. 7. Finally, both sides will have 3 minutes each to present their final statement about the issue. Institutions That Govern International Relations Thereare several international organizations that governments of: the world and individuals participate in. These include the United Nations, NAFTA, and NATO. There are also non- and economic growth. Let us look countries around: the International Court of Justice, governmental organizations promoting soci at them one by one. Peace Treaties and Military Alliances: The UN and NATO Global politics entails 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 independent actor in global politics. The premise for its establishment was the restructuring of the world devastated after the Second World War. The term “United Nations” was coined by former U.S. President Franklin D. Roosevelt in 1942 (United Nations, 2011). Its operations began on October 24, 1945. It started with 50 representatives from different ‘ontemporary Worldnomic issues countries. Generally, ry issues, €CO! it functions in four areas: militat environmental issues, and fina protection. It is made up of close ea countries fromaround the world, 193 memberstatesto be exact, with the Rep’ n of South Sudan as its latest member (United Nations, 2011). The UN, with : headquarters in New York City, was designed to be a place where countries coul come to discuss their issues without resorting to violence and war, which hed plagued our planet for several years in the past. Maintaining peace and building friendships is the number one goal of the UN, as well as providing a forum where countries could gather to discuss global issues. The General Assembly is the gathering of all of these countries. itis held in an auditorium where speeches are given. Representatives from different member states can vote on issues. Maintaining international peace and security became the central mission of the UN after the war. Up to this day, the UN is the major force in governing interstate relations (Ritzer, 2015). According to the UN (2011), peace and security are maintained “by working to prevent conflict; helping parties in conflict make peace; peacekeeping; and creating the conditions to allow peace to hold and flourish.” The UN also has what is known as the Security Council. This group of countries decides what to do when two or more countries are waging war or are on the verge of fighting. There are five permanent members of the UN Security Council—the United States, Britain, Russia, China, and France. In addition to the five members, 10 additional countries join the permanent members for two-year terms, making a total of 15 countries. The Security Council tries to be the arbiter in ceasefires between two sides. They can pass sanctions like block trade with another country as a punishment. They can send troops or observers and, if worst comes to worst, they can use military force. In the past, UN peacekeepers have been sent to Africa, Asia, and the Middle East. The “big five” permanent members have a veto power, which means that one member can stop the entire council from taking action against a country. This has come up recently during the Syrian Civil War in which Russia and China, who are allies with Syrian leader Bashar Al-Assad, have been able to stop the other members from stepping in to deal with the Syrian leader who was accused of using biological weapons against his own people. The main deliberative body, the General Assembly, provides a forum for member states to express their views and reach a consensus. In 1991, the UN’s military role was put into question during its intervention in Iraq’s invasion of Kuwait wherein the Security Council authorized the use of force (Ritzer, 2015). Aside from this, the UN intervened in the civil wars of less developed.countries, suchas Cambodia and East Timor, through “electionand human rightsmonitoring, Chapter 4: The Global interstate §disarm; u lament it, and even the assumption of state functions” (Weiss and Zach, 2007, p. 1219), m called UNICEF or the is to help children around cy relief from famine and ms in areas where there fate: pot all about fights. It has a progr! manana ais ’s Emergency Fund. Its primary goal |. They collect funds to distribute emergen poverty and disease. It also provides education progral are no schools. While UNICEF is part of the United Nations, they operate semi- independently and rely on fundraising of the UN is the reduction of In terms of economic issues, the main focus spGs) cover a range Of global inequality. The Sustainable Development Goals ( concerns for the improvement of all aspects of life. Acco! sustainable development encompasses ‘economic prosperity; social well-being, and environmental protection. Since the Millennium Development Goals (MDGs) did not end poverty for all people, the UN’s post-2015 sustainable development agenda showcases the vision of the organization when it comes to broader issues as climate change, disaster risk reduction, and gender equality. such as pollution such are and hazardous wastes, Environment Programme (UNEP). The rising sea level, and occurrence of Environmental issues, addressed through United Nations increasing rate of greenhouse gas emissions, ‘extreme weather patterns are the effects of climate change. As a response, the UN’s intergovernmental Panel on Climate Change (IPCC) took efforts that can mitigate climate change like assessment of climate science, facilitation of climate agreements, and giving assistance to countries to reduce emissions (UN, 2011). The UN also has the International Court of Justice (10), as the World Court. It is located in the Netherlands in a town called The Hague. This is where countries can settle disputes in a court of law, as well as a place where war criminals and rulers who have done terrible things to their people can be put to trial for their crimes. Aside from this, there are also a variety of international courts and tribunals created by the UN such as the International Criminal Court (ICC) and the International Tribunal for the Law of the Sea (ITLOS). The problem is, sometimes, gettit i trial pena tere isno ee ann EE more countries interact with one another, eontaniatien ss nen at , people are looking for the IC) to play bigger role in the future of our global world. usually referred to ~ Finally, the UN promotes and protects human rights through differe! i organizations and mechanisms. Since 1948, human rights have been bi Std the realm of international law. This is reflected in the Universal nee ms sah i en ding to the UN (2017), United |ments: ind agree Human Rights. A variety of UN-sponsored human rights treaties 2 office have been done for human protection, Other mechanisms include the Rights of the UN High Commissioner for Human Rights (OHCHR), the fe ee Council human rights treaty bodies, the UN Development Group's Hum Rights Mainstreaming Mechanism (UNDGHRM), and the Special Advisers 0” the Prevention of Genocide and the Responsibility to Protect (UN, 2011). There are also legal instruments that help the organization like the International Bill of Human Rights which consists of three legal documents: the Universal Declaration of Human Rights (1948), the Intemational Covenant on Civil and Political Rights, and the International Covenant on Economic, Socal, and Cultural Rights. The UN also believes in democracy and that itis interdependent with development and respect for all human rights, The UN is being criticized as being weak and is unable to stop wars. Because of this, the next institution that we are oing to discuss continues to play a big role in foreign conflicts. This is NATO. It is a defensive treaty or a military alliance between the United States, Canada, and 25 European countries. This treaty and international organization is based on the idea of collective security. The countries in this organization basically agreed to combine their militaries and announce to the world that if a country messes with one of its members, the other countries will come to their defense. NATO was created after the Second World War, mostly during the beginning of the Cold War. With the collapse of the Soviet Union in the early 1990s, former Soviet states, like Poland and Croatia, had joined NATO, making the present-day Russia feel more threatened, NATO has sent troops and undertaken military operations in Afghanistan, Kosovo, Iraq, and Africa. The United States with, by far, the most advanced military in the world makes up the bulk of NATO forces and operations. Many of these wars or conflicts are considered to be strictly U.S. wars. 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). It is considered as a Non-governmental organization (NGO). 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. In fact, the Red Cross began as an organization to help those who were wounded during wars. The big Red Cross worn by NGOs is the identification thatents Human Rights. A variety of UN-sponsored human rights treaties and panes have been done for human protection. Other mechanisms include the eee of the UN High Commissioner for Human Rights (OHCHR), the Human Rig! : Council; human rights treaty bodies, the UN Development Group’s Humal Rights Mainstreaming Mechanism (UNDGHRM), and the Special Advisers on the Prevention of Genocide and the Responsibility to Protect (UN, 2ott). There are also legal instruments that help the organization like the International Bill of Human Rights which consists of th ree legal documents: the Universal Declaration of Human Rights (1948), the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social, and Cultural Rights. The UN also believes in democracy and that itis interdependent with development and respect for all human rights, The UN is being criticized as being weak and is unable to stop wars. Because of this, the next institution that we are oing to discuss continues to play a big role in foreign conflicts. This is NATO. It is a defensive treaty or a military alliance between the United States, Canada, and 25 European countries, This treaty and international organization is based on the idea of collective security. The countries in this organization basically agreed to combine their militaries and announce to the world that if a country messes with one of its members, the other countries will come to their defense. NATO was created after the Second World War, mostly during the beginning of the Cold War. With the collapse of the Soviet Union in the early 1990s, former Soviet states, like Poland and Croatia, had joined NATO, making the present-day Russia feel more threatened. NATO has sent troops and undertaken military operations in Afghanistan, Kosovo, Iraq, and Africa. The United States with, by far, the most advanced military in the world makes up the bulk of NATO forces and operations. Many of these wars or conflicts are considered to be strictly U.S. wars. 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). It is considered as a Non-governmental organization (NGO). 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. In fact, the Red Cross began as an organization to help those who were wounded during wars. The big Red Cross worn by NGOs is the identification thatthe: . is ieee Part of why it is important for the Red Cross te be “aN Since they are neutral and would help the wounded from both sides oO war, esunteait neutral, governments are more likely to let them come into their ‘0 help. While the headquarters of the International Red Cross is in Geneva, Switzerland, they have branches all around the world. In addition to the Red Cross, there are many NGOs dedicated to helping people around the world. Doctors Without Borders provides free emergency healthcare in disaster areas; Oxfam fights famine and disease; Amnesty International speaks out for human rights and political prisoners; and Save the Children helps kids get health care and education. Global Economic Associations: The WTO and NAFTA The next group is an economic association—WTO. It is made up of 162 countries around the world and was created with the goal of increasing free trade. Countries, therefore, can buy and sell goo" placing taxes on imports or tariffs. In addition, tariffs are used to protect businesses and companies inside their country. Though good in nature, WTO is not without criticism. In fact, 2 protest in Seattle at a 1999 WTO Conference led toa major riot as some said that WTO was more about helping large companies and corporations than it was about helping people. tion is NAFTA. This is an economic treaty .d Mexico in which the three countries FTA is not without critics either. Some IAFTA as several car companies moved ds from one another without ‘Another famous economic organiza between the United States, Canada, an trade freely without taxing each other. NAI American autoworkers protested against N: their factories to Mexico in search for cheaper labor. NAFTA, like WTO, represents the challenge in America of keeping manufacturing factories. Globalization and Globalism You probably think about links, connections, and interrelatedness of things, people, and countries when you encounter the word “globalization.” However, when compared to the term “globalism,” globalization would be better described as the “increase or decline in the degree of globalism” (Nye, 2002, p. 1). What then is globalism? Globalism refers to the network of connections that transcends distances of different countries in the world. In other words, the links among countries and people are better associated with globalism whit th ed in which they become linked with one another is globalization. ieization by If we are to make a stark contrast between globalism and global ae it wil saying that globalization Means connectedness while globalism is not, ‘02 confusion that the present is the only time in which people got connected while in the past they were not. But even before the Industrial Revolution, the world was already connected, Through the conquests of different empires, such as those of the Romans, Many parts of the world became under one rule. Today, « however, the contemporary world is characterized by being connected through the Internet, modern transportation, and advanced communication technologies. This is to say, therefore, that societies in the world have always been connected; what makes the contemporary world different from the past is the type and speed of connection that People and societies experience. We can also differentiate globalism and globalization in terms of its “thickness” (Nye, 2002). Globalism is thin. As it becomes thicker, globalization happens. This means that being able to connect countries in the world through a more dynamic and faster way is globalization. Let us take global trade as an example. In the past, the Silk Road served as the trade routes among countries in Europe and in Asia. Aside from the trade of silk between the continents, other products, even illegal ones, were exchanged among traders and consumers. In addition, cultural interactions among people were made through their trades. However, they were felt by a relatively small group of people, most especially those who were actually on the road and did the trades. The connections were not intense nor “thick.” In contrast to the contemporary world, “globalism becomes increasingly thick” (Nye, 2002, p. 1). This is where globalization comes in. If we look at the global trade today, it has reached a greater number of people around the world. For example, the selling products are not solely done through physical transactions but can be done online as well. This allows one, who has access to computers and the World Wide Web, to be connected with millions of people around the world. Aside from the number of people, the speed was also affected by the transition from thin globalism to thick globalization. In the past, if you were a European trader taking the Silk Road going to China, it would take you days or weeks to sell your products. But today, it would only take a few seconds or minutes to sell, buy, and exchange products and services with other people even if they are a thousand miles away from you. A concrete example of this is the change in the price of oil which can happen overnight depending on its price in the world market. Although globalism and globalization are often understood in terms of the economy, Nye (2002) gave “four distinct dimensions of globalism: economic, military, environmental, and social” (p. 2). Like economic globalism, the three Chapter 4: The Global Interstate $ae also become thicker and faster as globalization intensifies. The i Peed of potential conflict and threat of nuclear war is an example of military globalism. in terms of environmental globalism, global warming continues to accelerate. The last dimension, social and cultural globalism, “involves Movements of ideas, information, images, and of people who carry ideas and - information with them” (Nye, 2002, p. 2). For instance, religious ideas have spread throughout the world at greater scope and speed. Religious teachings are delivered today though the mass media, such as televisions, radio, and the Internet. Unlike before, religious leaders had to walk by foot and had to deliver their messages in a face-to-face manner. With the advent of modern mass communication, computers, and social networking sites, it seems that the connections made through the exchange of information creates a new kind of network in this contemporary world. Itis at this point that the concept of informationalism will be helpful for us to discuss. Informationalism Globalism is tied to the notion of networks. For Castells (2000), “networks of all kinds of life” (p. 3). It was constitute the fundamental pattern of life, nd even in the past, the world is previously mentioned that in the present a connected. The difference between globalism and globalization is the speed and thickness or intensity of connections. Nevertheless, people are connected with one another whether as a small community or as a large country. The question now is about the type of connection that exists and begins to increase in the contemporary world. The answer lies on the growth of information as the binding force among people, things, and places around the globe. This technological paradigm, associated with computer science and modern telecommunication, that replaces industrialism is called informationalism (Castells, 2004). These are technology, the media, and the Internet. This is not to say that we do not need to produce material goods such as factories, clothes, and food; rather, exchanging information and knowledge, which is clearly immaterial goods, becomes central in the contemporary world (Hardt & Negri, 2000). Th due to the “three of the most cutting-edge aspects of the social world in general a globalization in particular” (Ritzer, 2015, p. 134), technology, media, and the internet. is The creation of the world’s first container ship in 1956 and the expansion of airfreight greatly hastened the transport of goods all around the world.+s of But @ notable example of technological advancement is the pen in Federal Express (FedEx) in the 19705. It makes use of computer technol cere its deliveries. Computer technology is used to check our health through t! invention of magnetic resonance imaging (MRIs), ultrasound, and CT of CAT scans. Space-based technologies were also made possible through the use of computers (Ritzer, 2015). The launching of satellites for military surveillance, the use of global positioning systems (GPS), and the operation of global navigation systems (GNS) are some remarkable examples. McLuhan and Fiore (2005)argued thatinthe New Media Age, the importance llesin the medium, the way in which the messages transmitted, not necessarily in the content presented through the medium. This means that televisions, radios, and newspapers have been shaping “individual subjectivity and culture, not only locally but globally” Ritzer, 2015, p. 143). In addition, the French social theorist Guy DeBord (1994) emphasized in his idea of media spectacle the sophistication and ubiquity of spectacular visual in televisions. This made TV news a form of entertainment. Although content matters in television broadcasts, visual spectacle or significance is an important element and perhaps the primary key to catch the attention of the audience. When one mentions online social networking, spam, and computer viruses, itis the Internet that binds them all. The Internet is a mark of the contemporary world. According to Ritzer (2015), “The Internet has. Prompted a flat world thesis; anyone can be involved in it, at least theoretically” (p. 150). Having a computer and accessing the Internet through our personal cellphones allow us to be connected with the rest of the world. We can gain information by accessing different websites, such as Facebook and Wikipedia, through the Internet. In the same manner, the information about ourselves that we share is also exposed. In order to control Internet access and today in our homes, our schools, our workplaces, use, there are mechanisms such as personal passwords or in the case of Chinese government, the “Great Firewall.” While globalization allowed the expansion of information, access to modern technologies is not.a universal matter that is available to every person around the world. The Internet and other technologies are limited by certain barriers. These barriers include lack of electricity, illiteracy, weak financial systems, and government regulations.