THE CONTEMPORARY WORLD (from Ellen Torrino)

About the Course:

This course introduces students to the contemporary world by examining the
multifaceted phenomenon of globalization. Using the various disciplines of the social sciences,
it examines the economic, social, political, technological, and other transformations that have
created an increasing awareness of the interconnectedness of peoples and places around the
globe.

Define Globalization
• The spread of products, technology, information, and jobs across national borders and
cultures (Investopedia).
• The process of interaction and integration among people, companies, and governments
worldwide. (Wikipedia)
• The development of an increasing integrated global economy marked especially by free
trade, free flow of capital, and the tapping of cheaper foreign labor markets (Merriam-
Webster).

Aside from economic, globalization is a social, cultural, political, and legal phenomenon.

• Globalization is the expansion and intensification of social relations and consciousness

across the world-time and across world-space (Manfred Steger).
o Expansion means the creation of new social networks and the multiplication of
these connections.
o Intensification means the expansion, stretching, and acceleration of these
networks.

Globalization as an Economic Process

• The increasing linkage of national economics through trade, financial flows, and foreign
direct investment (an investment in form of controlling ownership in a business in one
country by an entity based in another country) ...by multination firms (Gilpin).
• The removal of barriers to free trade and the closer integration of National economies
(Stiglitz).

Expanding economic activity is identified as both the primary aspect of globalization and the
engine behind its rapid development.

Globalization as a Political Process

• The reduced control of national governments over economic policy
• A process connected to the expansion of markets- in particular, steady advances in
communication systems are the primary forces responsible for the creation of a single
global market. (Bryan, Farrell)
• Gradual processes of 'relative deterritorialization' that facilitate the growth of
'supraterritorial' relations between people.

The role of governments will ultimately be reduced to serving as 'a supraconductor for global
capitalism'.

Globalization as a Cultural Process

• A densely growing network of complex cultural interconnections and interdependencies
that characterize modern social (Tomlinson)

Culture no longer remains tied to fixed localities such as town and nation but acquires new
meanings that reflect dominant themes emerging in a global context.

Globalization Critics
• Rejectionists
o Globalization is within the concept of vague words employed in academic
discourse. Linda Weiss (1998) objects to the term as 'a big idea resting on slim
foundations.
• Sceptics
o The world economy is not a truly global phenomenon, but one centered on
Europe, eastern Asia, and North America. The majority of economic activity
around the world still remain primarily nation in origin and scope (Hirst and
Thompson).
• Modifiers
o Cross-regional transfers of resources, technology, and culture did not start only
in the last few decades. The concepts of globalization are historically imprecise.

Homogeneity in Globalization
• The increasing sameness in the world as cultural inputs, economic factors, and political
orientations of societies expand to create common government.
• Examples: Christianity, Americanization, "McWorld Phenomenon".

Heterogeneity in Globalization
• The creation of various cultural practices, new economies, political groups because of
the Interaction of elements from different societies from the world.
• Examples: Latin Pop in American Culture, the Jollibee culture in the Philippines.
THE GLOBAL ECONOMY

Steger's definition of globalization (as the expansion and intensification of social relations and
consciousness across world-time and across world-space) implies the many dimensions of
globalization.

Economic globalization:
➢ historical process representing the results of human innovation and technological
progress (IMF).
➢ increasing integration and interdependence of economies around the world

The Silk Road

• It is the oldest known international trade route.
• It is a network of pathways that connected China- Middle East- Europe.
• Silk was highly traded. Silk went westward, and wools, gold, and silver went east.
• Although international, it was not truly global.

Note: The age of globalization truly began when populated continents started to exchange
products continuously (Flynn and Giraldez).

Mercantilism
• Countries started economic policies that maximize the exports and minimize the
imports
• Galleon trade was the first time Americas (Mexico) traded with Asia (the Philippines)
• Mercantilism was dominant in modernized parts of Europe from the 16 th to the 18th
centuries

Note: Mercantilism also had a lot of restrictions. Monarchies imposed high tariff and restricted
colonies to trade with competitors

The Gold Standard

• This is a more open trade system initiated by the US and Europe to prevent isolationist
mercantilism
• The currency prices and foreign exchange were based on the value of gold
• With the gold standard, countries agreed to convert paper money into a fixed amount of
gold
• In the value of gold is 100$ per ounce, dollars value is 1/100 th of an ounce of gold

Note: Many countries abandoned the gold standard when their gold reserves were depleted
during World War II

Fiat Currencies
• Fiat currency is legal tender whose value is backed by the government that issued it
• It is not backed by precious metals and its value is determined by their cost relative to
other currencies
• The Philippine peso is the fiat currency of the Philippines
• The system allows government to regulate production of money in circulation as they
see fit

Note: One danger of fiat money is that governments will print too much of it, resulting in
hyperinflation

Four Interconnected Dimensions of Economy (According to Benzces)

1. Globalization of Trade of Goods and Services
Ex: the establishment of the World Trade Organization, the emergence of China as a
major exporter of manufactured goods, BPO’s

2. Globalization of Financial and Capital Markets

Ex: the cross-listing of company shares of foreign stock exchanges, the 24-hour trading,
cross-hedging

3. Globalization of Technology and Communication

Ex: the online transactions, interactivities happening due to the advancement of
communication technology

4. Globalization of Production
Ex: the presence of multinational corporations (MNCs) and transnational corporations
(TNCs)

Agents of Interdependencies of Global Economies

1. The Nation State: the manager of global economy
Ex: the high tariffs imposed by bott countries in Chinese-US trade war

2. Global Corporations: national products technologies, and industries are obsolete

Ex: the expansion of Filipino brands (Jollibee, San Miguel, Bench, etc)

3. International Monetary System (IMS): facilitate economic globalization

- The Gold Standard: fixed exchange rate with gold as the international reserve
- The Bretton Woods System: the US dollar was the only convertible currency
✓ BWS established International Bank for Reconstruction and Development (now World
Bank) for post-war reconstruction; and International Monetary Fund for international
trade.
- European Monetary System later European Economic and Monetary Union:
arrangement between European countries to link their currencies

Effects of Economic Globalization

1. Globalization gives companies competitive advantage by allowing them to source cheaper
raw materials offshore.

2. Global corporations leverages the technical and production expertise and takes advantage of
the lower labor costs of developing countries.

3. Globalization provides jobs in countries where jobs are needed.

4. Globalization decreases the cost of manufacturing and allows consumers to have access to a
wider variety of goods.

5. Globalization exposes manufacturers and workers in industrialized economies to competition

with lower-cost markets.

6. Lower cost markets may suffer from exploitation of workers when jobs are outsourced in
countries with weak worker protection programs.

7. Globalization results to higher cases of uneven income distribution and eventually disparity
in wealth.
THE GLOBAL POLITICS

4 Attributes of World Politics

1. There are countries that states that are independent and govern themselves.
2. Countries interact through diplomacy.
3. Interactions are facilitated by international organizations.
4. Aside from facilitating interactions between states, they also take on lives of their own.

International Relations
- The study of the relations of states with each other and with international organizations
and certain subnational entities (e.g. bureaucracies, political parties, and interest
groups)

Internationalization
- Exploring the deepening interaction between states and increasing importance of
international trade, international relations, treaties, alliances, etc.

vs Globalization?

Country: a.k.a. the Nation-State

2 Terms in a Nation-State
1. State – refers to a country and its government
a. Exercises authority over the population
b. Governs a territory
c. Has a government structure that crafts rules for people to follow
d. Has internal and external sovereignty

2. Nation – an “organic and imagined community” with an official boundary

People share a common language, territory, history, ethnicity, or psychological make-up.
A nation allows a person to feel a sense of community.
Most nations strive to become states so national ideals can assume organizational
forms.

GLOBALIZATION AND THE CHANGES IN THE ROLES OF THE STATES

1. Globalization imposes a forced choice among nation states.
The nation-states are in danger of losing important elements of sovereignty
because of neo-liberalism. Nation states are forced to align policies congruent to
principles of free trade.

Ex: ASEAN encouraging member states to commit to ASEAN Free Trade Area

2. Globalization is the establishment of economic and political organizations

Ex: the establishment of the European Union
▪ Has single monetary system
▪ Has a parliament with legislative powers
▪ Has intercontinental jurisprudence (European Court of Justice)
▪ Statehood is not changed (but the economic and political functions)

3. Globalization has resulted to the establishment of international laws and principles.

Ex: The establishment of the United Nations
UN security Council (peacekeeping, international sanctions, permit for military
ops)
International Criminal Court (prosecution of those with crimes against humanity)
Universal Declaration of Human Rights (Individual’s rights)
UN Convention of the Law of the Sea (rights of nation states on world oceans)

4. Globalization has contributed to the rise of transnational activism (TNA’s).

Ex: the human rights group in the Philippines getting support from counterparts

INQUIRER.net (https://globalnation.inquirer.net/191001/eu-parliament-
threatens-to-revoke-ph-trade-perks)

5. Globalization leads to creation of new communications network.

Ex: online education in universities
Social media as venue for people to air sentiments
State-run TVs
SOVEREIGNTY is one of the principles of modern state politics.

What is SOVEREIGNTY?
Sovereignty is the complete and exclusive control of all the people and property within their
territory without any outside interference

The GLOBAL INTERSTATE SYSTEM

The Global Interstate System is a politically structured interstate system of allied and competing
states.

INTERNATIONALISM
Internationalism is the desire for greater cooperation and unity among states and people.

The Types:
1. Liberal Internationalism
o Seeks to expand, defend, and promote democracy across the globe in order to
maintain stability and peace. States should intervene in other sovereign states in
order to pursue liberal objectives.

2. Social Internationalism
o Based on the concept of working-class solidarity – “an injury to one is an injury
to all” applied at international level

The Benefits:
- Sustains quality of life of many nations by promoting peace and security, self-
determination, economic stability, and humanitarianism
- Political life can be regulated at the global level to construct a more peaceful structure

When internationalism is pursued, nation-states may lose a part of their nationalism.

To What Extent?
CONTEMPORARY GLOBAL GOVERNANCE (from Daphne Urot)

Global Governance
- The totality of norms, laws, policies, and bodies that define, comprise, and facilitate
transnational relations

International Organizations (IOs)

- International intergovernmental organizations or groups primarily made up of member
states

The Powers of IOs

1. Classification
- They create powerful global standards to establish identity
2. Fixing Meanings
- IOs give the operational meanings of terms, which affects various policies
3. Diffusing Norms
- They spread ideas across the world via bureaucracies that are seen experts in the field
and who can create new norms.

The UNITED NATIONS

“…to save succeeding generations from the source of war,…. To reaffirm faith in fundamental
human rights,…. To establish conditions under which justice and respect for the obligations
arising from treaties and other sources of international law can be maintained, and to promote
social progress and better standards of life in larger freedom.”

Classification: the US is a member of the United Nations but not a party to the International
Criminal Court

Principal Organs of the United Nations

General Assembly
- The general assembly is the policy making organ of the United Nations made of
representatives from each of the 193 member states.

Security Council
- The security council is the main body responsible for the peace and security of the 193
member states.

Economic and Social Council

- The ECOSOC is the principal organ charged with coordinating the economic and social
work related to the United Nations’ mission.
Secretariat
- The Secretariat is made of an international staff that carries out the day to day work of
United Nations.

International Court of Justice

- The international court of justice is the principal judicial organ that settles legal disputes
between member states.

Trusteeship Council
- The trusteeship council provides international supervision for 11 Trust territories.

Main Functions:
1. Maintain International Peace and Order
- Utilizes diplomacy and mediation

2. Protect Human Rights

- Reviews, monitors, reports, and commends human rights from a country-based
perspective

3. Deliver Humanitarian Aid

- Coordinates and supports responses to emergencies.

4. Promote Sustainable Development

- The sustainable development goals (of the UN) are the blueprint to achieve a better and
more sustainable future for all. They address the global challenges we face, including
poverty, inequality, climate change, environmental degradation, peace and justice.
5. Upholds International Laws
- Settles legal disputes by member-states
- Accords advisory opinions on legal questions by UN organs
- Veto Power
o The power of the five permanent members of the UN Security Council (China,
France, Russia, the United Kingdom, and the United States) to veto any
“substantive” resolution.
o Critics say that the veto is the most undemocratic element of the UN.

Challenges Confronting the United Nations

1. UN is underappreciated in its capacity to consolidate and disseminate among states.
2. Moral structures of social behavior among members complicate general standards.
3. In propositions, only member-states are often heard.
THE GLOBAL DIVIDE
- The socio-economic and political division of earth
- The concept of gap between the Global North and Global South in terms of
development and wealth

THE GLOBAL NORTH

- Less unequal
- Wealthier
- More democratic

Features
- Associated with the Western World or the developed countries
- Home of the G8 (Canada, France, Germany, Italy, Japan, United Kingdom, Russia,
and the USA)
- 4 out of 5 permanent members of the UN Security Council – France, US, UK, Russia
- Richer economies of Asia
- 90% of manufacturing industries
- ¼ of the population but 90% of the world’s overall income
THE GLOBAL SOUTH
- Generally poorer and developing countries
- Younger, more fragile democracies
- Weaker states
- Home to the largest states in terms of land area and population

THEORIES:

1. DEPENDENCY THEORY
o Underdeveloped is mainly caused by the peripheral position of affected
countries in the world economy
o Information has a top-down approach and first goes to the Global North before
countries in the Global South receive it
o Dependency – the inability of the state to complete capital accumulation
without reliance on the outside

2. MODERNIZATION THEORY
o Explains the process of modernization that a nation goes through as it transitions
from a traditional society to a modern one
o Poverty is a basic human condition, but the first to adopt modern technologies
and attitudes will become wealthier

3. NEOLIBERALISM
o Transfer the control of economic factors from the public sector to the private
sector
o Supports fiscal austerity, deregulation, free trade, privatization, and a reduction
in government spending

4. WORLD SYSTEMS THEORY

o Advancement is determined by core centers of power that allow nations to
become peripheral
o To get equality, abolish capitalism

REASONS FOR GLOBAL DIVIDE:

1. Historical legacy of the South
2. High levels of Southern indebtedness, poor governance, and corruption
3. High fertility rate in developing countries
4. Great diversity of the countries of the South
5. Little to no interest of the North to developments of the South

TERMINOLOGIES

• The Three World Model

o Arose in the mid-20th century as a way of mapping the various players in the Cold
War
1. First World – the powerful economies
2. Second World – obsolete following the collapse of the Soviet Union
3. Third World – meaning changed from “non-aligned” and become
more for the developing world
• Developed/Developing Taxonomy
o High group (HDI percentiles 51-75)
o Medium group (HDI 26-50)
o Low Group (Bottom quartile HDI)

In 2019, the Philippines has been classified under High HDI.

• World Bank Classifications

o High
o Upper-middle
o Lower-middle
o Low

In 2020, the Philippines is classified – lower middle income

TCW First Long Exam 12. Several US states are considering laws to
prohibit or restrict offshoring in countries like
1. How does globalization become a means of
India, China, the Philippines, and Vietnam,
exploitation of the labor force?
and unions are lobbying Congress to stop it.
Workers in jobs that are outsourced in
This shows how
countries…
Globalization exposes manufacturers and
2. Nation is an organic concept because of
work…
The lack of foreigners living in the
13. What is used to measure the progress of the
community…
Sustainable Development Goals
3. The UN reviews, monitors, reports, and
SDG Targets
commends human rights from a country-
14. The five permanent members of the UN
based perspective. With this, UN upholds
Security Council with the Veto Power include
what mandate?
–
To protect
China, US, France, Russia, UK
4. UNCLOS defines the rights and
15. The elements and methods such as policies,
responsibilities of nations with respect to:
shared norms and rules, and organizations
World’s oceans
that facilitate cooperative relations-
5. Social awareness movements operating
Global Governance
across state borders
16. The 1951 Refugee Convention’s definition of
Transactional activism
the word ‘refugee’ has been used by
6. Which is not a requirement for a territory to
countries to determine who can be
be called a nation-state?
considered a refugee or not. This highlights
A stable economy
IO’s power to
7. The SDG that recognized the access to energy
modify
as a very important pillar for the wellbeing of
17. In September 2020, the EU parliament
the people as well as economic development
expressed its concern and disapproval of the
and poverty alleviation.
alleged continuous human rights violations in
SDG 7
the Philippines through a resolution. The
8. One of the challenges experienced by the UN
Philippines is not a party of EU so
is its struggle in coming up with general
They gave the Philippines an economic
standards. Why?
sanction…
UN is composed of member-states with very
18. Which is not one of the 17 Sustainable
different…
Development Goals?
9. The politically structure system of allied and
Clean Air for the Future
competing states that promote international
19. Why was the oldest known international
collaboration is called
trade route name the Silk Road?
Global Interstate System
Silk was the most common item traded
10. In the Manila Galleons, Manila traded with
20. Modifiers question globalization’s
what country?
Novelty
Mexico
21. Mercantilism was considered
11. Which is considered the central aspect of
Isolationist
globalization and the engine behind its rapid
22. Neo-liberalism exposes nation-states to the
development?
danger of losing important elements of
Economic expansion
sovereignty. Neo-liberalists believe in
Market freedom, competition, and free trade
Di ni sure ang answers
23. The judicial institution of the European Union 34. The power and recognition on the part of all
– states that each possesses authority within
European Court of Justice one’s territory in equal measure.
24. The creation of uniform practices, same External sovereignty
economics, and similar forms of government 35. Which is true of World Politics?
is an indication of International organizations have to always
Homogeneity in globalization over…
25. Which is not true of Fiat currencies? 36. Considered the most important of all organs
It’s worth is independent of the value of of the UN because of its role in international
precious… peace and order –
26. What was the original purpose of the Security Council
establishment of the World Bank? 37. Simply defined as peaceful negotiations –
Initiate country to country economic relations Diplomacy
27. The group that questions the processes of 38. The most well represented organ of the UN
globalization on the basis of its scope where Carlos Romulo served as president for
Sceptics 2 years
28. Globalization leads to creation of new General Assembly
communications network as exemplifies by 39. Which is not a function of the UN Security
social media becoming venues for people to Council?
air sentiments. Which is not a global social a. Maintenance of international peace
media movement geared for a cause? and security
OOTD b. Authorize the use of force to maintain
29. When new social connections are created, security
social relations and consciousness are going c. Impose sanctions upon parties
through the process of d. Promote international political
Expansion cooperation
30. What can happen to culture in globalization? 40. An agent of interdependencies of global
It will no longer be solely identified with economics that facilitates economic
certain… globalization –
31. Company XYZ is a European company International Monetary System
specializing in mobile technology and
communication systems. In 2007, it
established a plant in Vietnam to curb its
operational expenses. This shows –
Globalization of Financial and Capital markets
32. Which is a feature of mercantilism?
Increased export to accumulate wealth and
po…
33. A doctrine of internationalism that seeks to
maintain peace and order through both
humanitarian ways and intervention in other
sovereignty states –
Liberal Internationalism

Di ni sure ang answers