I.

COURSE TITLE: GE 3 ( Contemporary World)

II. NUMBER OF UNITS: 3 Units

III. COURSE DESCRIPTION:

This course introduces students to the contemporary world by examining the

multifaceted phenomenon of globalization. Using the various discipline of the social sciences. It
examines the economic, social, political, technological, and other transformation that has
created an increasing awareness of the interconnectedness of peoples and places around the
globe. To this end the course provides an overview of the various debates in global governance,
development, and sustainability. Beyond exposing the students to the world outside the
Philippines, it seeks to inculcate a sense of global citizenship and global ethical responsibility.

IV. COURSE OUTCOME:

1. Distinguish different interpretations and approaches to globalization.

2. Describe the emergence of global economic, political, social, and cultural systems.
3. Analyse the various contemporary drivers of globalization.
4. Understand the issues confronting the nation-state.
5. Assess the effects of globalization on different social units and their responses.
6. Articulate personal positions on various global issues.
7. Identify the ethical implications of global citizenship.

V. COURSE OUTLINE

A. Prelim Period
Module 1. Defining Globalization
Module 2. Dynamics of Local and Global Culture

B. Midterm Period
Module 3. The Global Economy
Module 4. Economic Globalization, Poverty, and Inequality

C. Semi-Finals Period
Module 5. The Global City
Module 6. Market Integration

D. Semi-Finals Period
Module 7. Global Governance
Module 8. The Relevance of the State amidst Globalization

VI. CONTENT DISCUSSION:

MODULE 1: THE STUDY OF GLOBALIZATION

Globalization - is the process in which people, ideas and goods spread throughout the world, spurring
more interaction and integration between the world's cultures, governments and economies.
- is the increasing interaction people, people, states, or countries through the growth of
the international flow of money, ideas, and culture. Thus, globalization is primarily
focused on economic process of integration that has social and cultural aspects.
- is a very important change, if not, the "most important" (Bauman, 2003).

“Global age” refers to a period of time when there is a prevailing sense of the interconnectedness of all
human beings, of a common fate for the human species and of a threat to its life on this Earth.

Examples of globalization are: the internet, allows a person to know what is happening to the
rest of the world simply by browsing google. The mass media, also allows for connections among
people, communities, and countries all over the globe.

Globalization encompasses a multitude of processes that involves economy, political system, and
culture.

 Economic globalization refers to the increasing interdependence of world economies as a result

of the growing scale of cross-border trade of commodities and services, flow of international
capital and wide and rapid spread of technologies
 Political globalization refers to the growth of the worldwide political system, both in size and
complexity. The creation and existence of the United Nations has been called one of the classic
examples of political globalization.
 Cultural globalization refers to the transmission of ideas, meanings, and values around the
world in such a way as to extend and intensify social relations. This process is marked by the
common consumption of cultures that have been diffused by the Internet, popular culture
media, and international travel.

Over the years, globalization has gained many connotations pertaining to progress,
development, and integration. On the other hand, sone view globalization as a positive phenomenon.
For instance, Swedish journalist

Thomas Larsson (2001) saw globalization as "world shrinkage, of distances getting shorter, things
moving closer, and pertains to the incresing ease with which somebody on one side of the world can
interact with somebody on the other side of the world."

On the other hand, some see globalization negatively, see it as occurring through and with;
 regression (a trend or shift toward a lower or less perfect state: such as. a : progressive decline
of a manifestation of disease.),
 colonialism (the policy or practice of acquiring full or partial political control over another
country, occupying it with settlers, and exploiting it economically.), and
 destabilization (the action of making a government, area, or political group lose power or
control, or making a political or economic situation less strong or safe, by causing changes and
problems.)
Martin Khor, the former president of Third World Network (TWN) once regarded globalization as
colonization.

Metaphors of Globalization

Solidity refers to the barriers that prevent or make difficult the movement of thing, namely natural and
man-made. Examples of natural solids are landforms and bodies of water. Man-made barriers include
Great wall of China and Berlin Wall. An imaginary line such as the nine-dash line created by the People's
Republic of China in their claim to the South China Sea is an example of modern man-made solid.
However, they have the tendency to melt.
Melting is a process of becoming increasingly liquid.
Liquidity refers to the increasing ease of movement of people, things, information, and places in the
contemporary world.
Liquidity and solidity are in constant interaction. However, liquidity is one increasing and proliferating
today. Therefore, the metaphor that could best describe globalization is liquidity.

Flows of Globalization

Flows of Globalization are the movement of people, things, places, and information brought by the
growing "porosity" of global limitations.

Globalization can be considered as a system of flows:

 Freight (trade). Mainly asymmetrical flows taking place to satisfy material demands ranging
from raw materials to finished goods and all the intermediate goods in between.
  Passengers (migration). Mainly symmetrical flows of people taking place for a variety of
reasons, most of them related to tourism with air transportation being the dominant mode
supporting such flows.
 Information (telecommunications). The complex and extensive flows of information used for
communication, power exchanges (e.g. an online order), and symbolic exchanges (e.g.
education).

Globalization Theory

1. Homogeneity refers to the increasing sameness in the world as cultural inputs, economic factors, and
political orientations of societies ecpand to create common practices, same economies, and similar
forms of government.
 Homogeneity in Culture - is often linked to cultural imperialism. This means, a given culture
influences other cultures.
 Homogeneity in Economy - there is recognition of the spread of neoliberalism, capitalism, and
the economy in the world. Global economic crises are product of homogeneity in economy.
 Homogeneity in Politics - if one takes into account the emerging similar models of governance
in the world. Barber (1995) said that "McWorld" is existing, it means only obe political
orientation is growing in today's societies.
(McDonaldization is the process by which Western societies are dominated by the principles of
fast food restaurants. McDonaldization involves the global spread of rational systems, such as efficiency,
calculability, predictability, and control.)

2. Heterogeneity - pertains to the creation of various cultural 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 of the hybrids (combinations of culture that can
be produced through the different trans planetary processes.
 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 interacts with local
factors or a specific geographic area, the "glocal" is being produce.
 Heterogeneity in Economy - the commodification of cultures and glocal markets are examples
of differentiation happening in economies around the world.
 Heterogeneity in Politics - Barber (1995) also provided the "Jihad" the opposite of the
"McWorld". The "Jihad" as referred by Ritzer (2008) are the political groups that are engaged in
an "intensification of nationalism and that leads to greater political heterogeneity through the
world.

Merits of Globalization

What can a company or an institution gets from globalization? There are eight (8) merits or advantages:
1. Global competition and imports keep a lid on prices such that inflation is likely to derail
economic growth.
2. An open economy spur fast innovation with fresh ideas from abroad.
3. Export jobs often pay more than other jobs.
4. Unfettered capital flow keeps interests flow.
5. Living standards grow up faster.
6. Productivity grows more quickly when countries produce goods and services in which they are
of comparative advantage.
 7. Countries liberalize their visa rules and procedures so as to permit the full flow of people from
country to country.
8. It results from freeing up the unproductive sector to investment and the productive sector to
export related activities resulting in a win-win situation for the world economy.

Demerits of Globalization

Globalization has also its disadvantages or demerits. Among these are:

1. Several people lose their jobs when companies import cheap labor or materials or shift
production abroad.
2. Workers face pay cut demands from employers who often threatens to export jobs.
3. Unregulated globalization can cause serious problem to poor and developing countries in terms
of labor force, wages, benefits, job terminations, and others.
4. High foreign stakes on industries where it is not necessarily needed could affect the economic
growth of domestic enterprise.
5. Sovereignty of the country and company/institution may be at stake.

MODULE 2: DYNAMICS OF LOCAL AND GLOBAL CULTURE

Globalization’s contemporary omnipresence has resulted in an emphasis on the conflicts

between the local and the global. This emphasis has blurred our ability to have insights that may be
gained by recognizing that the local and the global are interdependent and cannot exist without each
other.

Global flows of culture tend to move more easily around the globe than ever before, especially through
non-material digital forms. There are three perspectives of 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 potential
for "catastrophic collision".
 Cultural hybridization approach emphasizes the integration of local and global culture.
Globalization is considered to be a creative process which gives rise to hybrid entities that are
not reducible to either the global or the local. A key concept is "glocalization" or the
interpretation of the global and local resulting in unique outcomes in different geographic
areas. Another key concept is Arjun Appadurai's "scapes" on 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.
 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 emposes 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.
Globalization of Religion
Globalization has played a tremendous role in providing a context for the current revival and
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 a fertile
milieu to spread and thrive.
Important means of dissemination of religious ideas: INFORMATION TECHNOLOGIES, TRANSPORTATION
MEANS, MEDIA

As Turner (2007) explained:

Globalization transforms the generic “religion” into a world-system of competing and conflicting
religions. This process of institutional specialization 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 as being "world religions."
The challenges of globalization to 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 effects of religion is approved also by Samuel Huntington's clash of civilizations, which
maintains that such dehybridizing upshots spring also from the religious partitioning and clashes.

Globalization Affects Religious Practices and Beliefs

Evolving trade routes led to the colonization of the Asia, Africa, Central and South America. Religion
became an integral part of colonization and later globalization. Religion has been a major feature in
some historical conflicts and the most recent wave of modern terrorism.

The Impact of Globalization

 flattens cultural differences
 erodes local customs and beliefs
 spreads secular, capitalist way of life

What is Religion Nowadays?

 it’s no longer a set of beliefs that people arrive by reflection
 it’s a symbolic system which carries our identity and marks out social/ethic and other
boundaries
 it marks crucial moments in the life of cycles of the rituals
 it provides powerful mechanisms for psychological and social tensions.

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 the potential benefits
coming out from a liberalized global economy. This is 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.
 In a 2007 survey, the Financial Times revealed that majority of Europeans consider that
globalization brings negative effects to their societies (as cited in Jacoby and Meunier, 2010). Many
policy makers and scholars think that globalization must be regulated and managed. The threats of an
"ungoverned globalization" can be countered what Jacoby and Meunier called managed globalization; it
refers to "all attempts to make globalization more palatable to citizens".

Origins and History of Globalization

Globalization is an historical process that began with the first movement of people out of Africa into
other parts of the world. Traveling short or long distances, migrants, merchants and others have
delivered their ideas, customs and products to new lands. The melding, borrowing and adaptation of
outside influences are found in many areas of human life.

The five different perspectives regarding the origins of globalization

1. 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.

2. Cycles
For some, globalization is a long-term cyclical process and thus, finding its origin will be a daunting task.
What is important is the cycles that globalization has gone through (Scholte, 2005). Subscribing to this
view will suggest adherence to the idea that other global ages have appeared. There is also the notion to
suspect that this point of globalization will soon disappear and reappear.

3. Epoch
Ritzer (2015) cited Therborn's (2000) six great epochs of globalization. These are also called "waves" and
each has its own origin. Today's globalization is not unique if this is the case. The difference of this view
from the second view (cycles) is that it does not treat epochs as returning. The following are the
sequential occurrence of the epochs:
1. Globalization of religion (fourth to seventh centuries)
2. European colonial conquests (late fifteenth century)
3. Intra-European wars (late eighteenth to early nineteenth centuries)
4. Heyday of European imperialism (mid-nineteenth century to 1918)
5. Post-World War Il period
6. Post-Cold War period

4. Events
Specific events are also considered as part of the fourth view in explaining the origin of globalization. If
this is the case, then several points can be treated 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 circumnavigation of the globe in 1522.
The recent years could also be regarded as the beginnings of globalization with reference to specific
technological advances in transportation and communication.

 The first transatlantic telephone cable (1956)

 The first transatlantic television broadcast (1962)
 The founding of the modern Internet in 1988
 The terrorist attacks on the Twin Tower in New York (2001)

5. Broader, More Recent Changes

These broad changes happened in the last half of the 20th century. Scholars today point to
these three notable changes as the origin of globalization that we know today. They are as follows:
1. The emergence of the United States as the global power (post-World War II)
2. The emergence of multinational corporations (MNCs)
3. The demise of the Soviet Union and the end of the Cold War

Global Demography
Demographic transition is a singular historical period during which mortality and fertility rates decline
from high to low levels in a particular country or region.
The transition started in mid- or late 1700s in Europe. During that time, death 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 20th century that mortality
decline in Africa and Asia, with the exemption of Japan.
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.

Generations:
Baby Boomers: Baby boomers were born between 1946 and 1964. They're currently between 56-74
years old (71.6 million in U.S.)
Gen X: Gen X was born between 1965 and 1980 and are currently between 40-55 years old (65.2 million
people in U.S.)
Gen Y: Gen Y, or Millennials, were born between 1980 and 1994. They are currently between 24-39
years old (72.1 million in the U.S.)
Gen Y.1 = 25-29 years old (around 31 million people in U.S.)
Gen Y.2 = 29-39 (around 42 million people in U.S.)
Gen Z: Gen Z is the newest generation to be named and were born between 1996 and 2015. They are
currently between 5-24 years old (nearly 68 million in U.S.)

The term “Millennial” has become the popular way to reference both segments of Gen Y (more on Y.1
and Y.2 below).

Realistically, the name Generation Z is a placeholder for the youngest people on the planet. It is likely to
morph as they leave childhood and mature into their adolescent and adult identities.
 Global Migration

Global Migration is the flow of movement of people from one place to another around the world. The
main purpose of migration is to find work or employment.

The nuances of the movements of people around the world can be seen through the categories of
migrants - "vagabonds" and "tourists".
Vagabonds are on the move "because they have to be" - 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.
Asylum seekers are refugees who seek to remain in the country to which they flee.

Labor migration is driven by "push" factors (lack of employment opportunities in home countries), as
well as "pull" factors (work available elsewhere).

Migration is traditionally governed either by "push" factors such as political persecution, economic
depression, war, and famine in the home country or by "pull" factors such as a favorable immigration
policy, a labor shortage, and a similarity of language and culture in the country of destination.

Diaspora used to describe migrant communities. It is a transnational process, which involves dialogue to
both imagined and real locales.

Virtual diasporas utilize technology such as internet to maintain the community network.

Factors Influencing Migration and Population Movements

 Socio-political, economic and ecological factors are the main forces driving migration.
 Rising communal violence world-wide, often as a result of ethnic or religious intolerance, has led
to increase levels of migration.
 Economic disparity between developing and developed economies encourages the movement
of skilled labor from former to the latter. Temporary migration visas allow for an increase in the
rate of circular migration.
 Changes in the ecological environment have the potential to worsen food and water insecurity
in various parts of the globe. Limited access to food and water resources may push people to
migrate to countries where these resources are more readily available.
MODULE 3: THE GLOBAL ECONOMY

I. Global Economy
 Global Economy is also referred to as world economy. This term refers to the international
exchange of goods and services that is expressed in monetary units of money. It may also mean as the
free movement of goods, capital, services, technology, and information.

In some contexts, "global" or "International" economy is distinguished and measured separately

from national economies while the "world economy" is simply from national economies while the
"world economy" is simply an aggregate of the separate country's measurements.

World economy is exclusively limited to human economic activity and is typically judged in
monetary terms. Typical examples are illegal drugs and other black market goods which by any standard
are a part of the world economy, but for which these is by definition no legal market of any kind.

The Top 5 Economies in the World

Ranking the Richest Countries in the World

Countries by GDP

The different phases of economic cycles toss economies around the world. However, it’s
interesting to see that these top economies don't budge easily from the positions they hold. When
compared to the top 20 economies of 1980, 17 are still present on the list, which means only three new
entrants.

1. United States

U.S. Nominal GDP: $21.44 trillion - U.S. GDP (PPP): $21.44 trillion
The U.S. has retained its position of being the world's largest economy since 1871. The size of
the U.S. economy was at $20.58 trillion in 2018 in nominal terms and is expected to reach $22.32 trillion
in 2020. The U.S. is often dubbed as an economic superpower and that's because the economy
constitutes almost a quarter of the global economy, backed by advanced infrastructure, technology, and
an abundance of natural resources.
2. China

China Nominal GDP: $14.14 trillion - China GDP (PPP): $27.31 trillion
China has experienced exponential growth over the past few decades, breaking the barriers of a
centrally-planned closed economy to evolve into a manufacturing and exporting hub of the world. China
is often referred to as the "world's factory," given its huge manufacturing and export base. However,
over the years, the role of services has gradually increased and that of manufacturing as a contributor to
GDP has declined relatively. Back in 1980, China was the seventh-largest economy, with a GDP of
$305.35 billion, while the size of the U.S. then was $2.86 trillion. Since it initiated market reforms in
1978, the Asian giant has seen an economic growth averaging 10% annually. In recent years, the pace of
growth has slowed, although it remains high in comparison to its peer nations.

3. Japan

Japan Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion
 Japan is the third-largest economy in the world, with its GDP crossing the $5 trillion mark in
2019. The financial crisis of 2008 rocked the Japanese economy and it's been a challenging time for its
economy since then. The global crisis triggered a recession, followed by weak domestic demand and
huge public debt. When the economy was beginning to recover, it suffered a massive earthquake that
hit the country socially and economically. While the economy has broken the deflationary spiral,
economic growth remains muted.
4. Germany

Germany Nominal GDP: $3.86 trillion - Germany GDP (PPP): $4.44 trillion
Germany is not just Europe's largest economy but also the strongest. On the global scale, it is
the fourth-largest economy in terms of nominal GDP, with a $4 trillion GDP. The size of its GDP in terms
of purchasing power parity is $4.44 trillion, while its GDP per capita is $46,560 (18th place). Germany
was the third-largest economy in nominal terms in 1980, with a GDP of $850.47 billion.
5. India

India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion

India is the fastest-growing trillion-dollar economy in the world and the fifth-largest overall, with
a nominal GDP of $2.94 trillion. India has become the fifth-largest economy in 2019, overtaking the
United Kingdom and France. The country ranks third when GDP is compared in terms of purchasing
power parity at $11.33 trillion. When it comes to calculating GDP per capita, India's high population
drags its nominal GDP per capita down to $2,170. The Indian economy was just $189.438 billion in 1980,
ranking 13th on the list globally. India's growth rate is expected to rise from 7.3% in 2018 to 7.5% in
2019 as drags from the currency exchange initiative and the introduction of the goods and services tax
fade, according to the IMF.

Millennium Development Goals (MDGs)

The United Nations Millennium Development Goals are eight goals that all 191 UN member
states have agreed to try to achieve by the year 2015. The United Nations Millennium Declaration,
signed in September 2000 commits world leaders to combat poverty, hunger, disease, illiteracy,
environmental degradation, and discrimination against women. The MDGs are derived from this
Declaration, and all have specific targets and indicators.

The Eight Millennium Development Goals are:

1. to eradicate extreme poverty and hunger;
2. to achieve universal primary education;
3. to promote gender equality and empower women;
4. to reduce child mortality;
5. to improve maternal health;
6. to combat HIV/AIDS, malaria, and other diseases;
7. to ensure environmental sustainability; and
8. to develop a global partnership for development.

The MDGs are inter-dependent; all the MDG influence health, and health influences all the MDGs. For
example, better health enables children to learn and adults to earn. Gender equality is essential to the
achievement of better health. Reducing poverty, hunger and environmental degradation positively
influences, but also depends on, better health.
II. Poverty

What Is Poverty?

Poverty is a state or condition in which a person or community lacks the financial resources and
essentials for a minimum standard of living. Poverty means that the income level from employment is so
low that basic human needs can't be met. Poverty-stricken people and families might go without proper
housing, clean water, healthy food, and medical attention. Each nation may have its own threshold that
determines how many of its people are living in poverty.

Global Poverty

Poverty has decreased in developed countries since the industrial revolution. Increased
production reduced the cost of goods, making them more affordable. Advancements in agriculture
increased crop yields as well as food production. As of 2015, an estimated 736 million people lived
extreme poverty, which the World Bank defines as surviving on less than $1.90 per day. Of the total,
roughly half lived in just five countries: India, Nigeria, Democratic Republic of Congo, Ethiopia and
Bangladesh.

Common traits for those living in extreme poverty include:

a. Little or no education
b. Under the age of eighteen
c. Work in farming or agriculture

Poverty rates are important statistics to follow for global investors since high poverty rates are often
indicative of more severe underlying problems within a country.

Factors of Poverty

Access to good schools, healthcare, electricity, safe water, and other critical services remains
elusive for many and is often determined by socioeconomic status, gender, ethnicity, and geography.
For those able to move out of poverty, progress is often temporary. Economic shocks, food insecurity,
and climate change threaten their gains and may force them back into poverty.

Poverty is a difficult cycle to break and often passed from one generation to the next. Typical
consequences of poverty include alcohol and substance abuse; less access to education; poor housing
and living conditions, and increased levels of disease. Heightened poverty is likely to cause increased
tensions in society, as inequality increases. These issues often lead to rising crime rates in communities
affected by poverty.

Types of Poverty
1. Poverty threshold/Poverty line
In the Philippines, a person is officially living in a poverty if he makes less than 100,534 pesos a
year, around 275 pesos a day.
2. Extreme Poverty/ Absolute Poverty
According to U.N (2015) is a condition characterized by severe deprivation of human needs
including food, safe drinking water, sanitation facilities, health, shelter, education, and information. The
U.N defines extreme poverty or absolute poverty as living on less than $1.25 a day.
Most people who have been life out of extreme poverty are still poor and being poor comes
with serious problems, from disease to lack of water. Income inequality is rampant and one in seven still
live without electricity.

III. Economic Globalization and Global Trade

Global economy or economic globalization is concerned on the globalization of production,

finance, markets, technology, organizational regimes, institutions, corporations, and labor.

Types of economies associated with economic globalization

1. Protectionism- "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 descriminatin against foreign competitors." (McAleese, 2007 as cited in Ritzer,
2015, p.1169).

Trade protectionism usually comes in quotas and tariffs.

Tariffs are required fees on imports and exports.
A quota is a government-imposed trade restriction that limits the number or monetary value of
goods that a country can import or export during a particular period.
The policy of trade protectionism was practiced during the mercantilist era, from sixteenth to
seventeeth centuries until the early years of Industrial Revolution. The Great Depression of 1929
marked the peak of protectionism.
Countries accused of practicing protectionism:
 China
 Japan
 United States
World War II heavily influenced the shifting of the dominant economic policy from
protectionism to trade liberalization of free trade.

2. Trade Liberalization or Free Trade- means goods and services move around the world more easily
than ever.
 The Industrial Revolution marked a period of development in the latter half of the 18th century
that transformed largely rural, agrarian societies in Europe and America into industrialized,
urban ones.
  Leapfrogging is the notion that areas which have poorly-developed technology or economic
bases can move themselves forward rapidly through the adoption of modern systems without
going through intermediary steps.
 Fair Trade, as defined by the International Fair Trade Association, is the concern for the social,
economic, and environmental well-being of marginalized small producers. It aims for a more
moral and equitable global economic system.

Concerns of Fair Trade:

1. Protection of workers and producers

2. Establisments of more just prices
3. Engagement in environmentally sound practices and sustainable production
4. Creation of relationships between producers in the south and consumers in the north
5. And promotion of safe working environment

IV. Economic Globalization and Sustainable Development

Economic Globalization

Economic globalization refers to “the process enabling financial and investment markets to operate
internationally.” In other words, globalization means to put the whole globe within reach of capital, and
thus within reach of those who own the capital. Liberalization used in combination with globalization is a
beautiful expression. But in this context it actually means liberty for the investment and financial
markets. In other words, it means freedom for the owners of capital to act.

This is not necessarily evil. There will be no economic growth without capital. The question is, how is it
applied, and who benefits?

UN’s 17 sustainable development goals (SDGs) to transform our world by 2030:

 No Poverty
 Zero Hunger
 Good Health and Well-being
 Quality Education
 Gender Equality
 Clean Water and Sanitation
 Affordable and Clean Energy
 Decent Work and Economic Growth
 Industry, Innovation and Infrastructure
 Reduced Inequality
 Sustainable Cities and Communities
 Responsible Consumption and Production
 Climate Action
 Life Below Water
 Life on Land
 Peace and Justice Strong Institutions
 Partnerships to achieve the Goal
V. Environmental Degradation

Industrial revolution – hastened the economic development

– This period in human history made possible the cycle of efficiency.
Efficiency – means finding the quickest possible way of producing large amounts of particular product.

Efficiency Cycle
 Buying of goods easier for people.
 There is an increased demand.
 Ultimately, there was an increased efficiency.

Efficiency Cycle harms the planet in number of ways:

1. The Earth’s atmosphere is damage by more carbon emissions from factories around the world.
2. The destruction of coral reefs and marine biodiversity as more and more waste are thrown into the
ocean.
3. Deforestation
4. Pollution
5. Climate change

Neoliberals and Environmentalist debate the impact of Free trade on the environment

Environmentalists – argue that environmental issues should be given priority over economic issues.
Neoliberals – see the efforts of the environmentalists as serious impediments to the trade.

VI. Ecological Modernization Theory – sees globalization as a process that can both protect and
enhance the environment.

Various efforts to deal with Climate change:

 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.
 Implementing various measures such as “carbon tax” and “carbon neutrality”
 The use of ethanol as an alternative to gasoline (it has attendant set of problems –– it is less
efficient and it has led to an escalation to the price of corn, which currently serves as a major
source of ethanol.

A carbon tax is a fee that a government imposes on any company that burns fossil fuels. The most
widely-discussed are coal, oil, gasoline, and natural gas. When these carbon-rich fuels are burned they
produce greenhouse gases. These gases, such as carbon dioxide and methane, create global warming by
heating the atmosphere.

Carbon neutrality is a term used to describe the action of organizations, businesses and individuals
taking action to remove as much carbon dioxide from the atmosphere as each put in to it. The overall
goal of carbon neutrality is to achieve a zero carbon footprint.

VII. 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.
Global food security means delivering sufficient food to the entire world population.
The security of food also means the sustainability of society such as population growth, climate change,
water scarcity, and agriculture.

The closest aspect of human life associated with food security is the environment. The challenge to food
security can be traced to the protection of environment.

Major environmental problems associated with food security:

 Destruction of natural habitat – major environmental problem, particularly through
deforestation.
 Industrial fishing – has contributed to a significant destruction of marine life and ecosystem.
 Biodiversity and usable farmland have also declined at a rapid pace.
 Decline in the availability of fresh water. The problem is further intensified by the consumption
of “Virtual water”
Virtual water is the volume of water used to produce consumer products. The total volume of
water refers to all of the water used in the production of a product. Essentially all of the
“hidden” water behind a product. Every product we consume contains virtual water.

The destruction of the water ecosystem may lead to the creation of “Climate refugees, people
who are forced to migrate due to lack of access to water or due to flooding.”

 Pollution through toxic chemicals

 Global warming – causes the melting of land-based and glacial ice with potentially catastrophic
effect.
 Population growth and its attendant increase in consumption intensify ecological problems.

MODULE 4: ECONOMIC GLOBALIZATION, POVERTY, AND INEQUALITY

A. What is economic and trade globalization?

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.

Economic Winners and Losers

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. 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.

The multiplier effect means an increase in one economic activity can lead to an increase in other
economic activities. For instance, investing in local businesses will lead to more jobs and more income.

Opponents of economic globalization called the outsourcing of jobs as exploitation and

oppression, a form of economic colonialism that puts profits before people. A few call for protectionist
policies like higher tariffs and limitations on outsourcing.

Outsourcing (sometimes referred to as "contracting out") shifts tasks, operations, jobs, or processes to
an external workforce, by contracting with a third party for a significant period of time. (Ex. Business
process outsourcing or BPO refers to subcontracting a company's non-core functions to a third-party
service provider.)

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 people 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.

Microcredit – the lending of small amounts of money at low interest to new businesses in the
developing world.
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.

Muhammad Yunus won the Nobel Peace Prize for implementing a simple idea. He gave small
loans, on average around $100, to low-income people in rural areas. The borrowers, who are mostly
female, often used the money to fund plans that could raise their income.

Yunus (2012) explained, "In my experience, poor people are the world's greatest entrepreneurs.
Every day they must innovate in order to survive. They remain poor because they do not have the
opportunities to turn their creativity into sustainable income."

B. 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.

Income – is the new earnings that are constantly being added to the pile of a country's wealth
income inequality – means that new earnings are being distributed; it values the flow of goods and
services, not a stock of assets (Economist, 2012).

In order to measure global economic inequality, economists usually look at income using the Gross
Domestic Product (GDP) –– total market value of the goods and services produced by a country's
economy during a specified period of time.

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. Due to currency depreciation, however, the United
Kingdom had a significant decline.

"economic big bang", according to an economist Branko Milanovic (2011), who specializes in global
inequality, 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.

Although it is the Industrial Revolution that allowed a significant inequality in the past, economic
globalization and international trade are the forces responsible in today's global income inequality.

Many economists believe that the world's poorest people gained something from
globalization. The rich, on the other hand, earned a lot more.

Harvard economist Richard Freeman (2011) 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.

Skill-based technological change – In modernized economies, jobs are more technology-based,

generally requiring new skills.

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.
C. THE THIRD WORLD AND THE GLOBAL SOUTH

Global South (The Third World)

The term “third world country” was created during the Cold War and was used to categorize a
country’s alignment during the war.
There were three categories at this time:
1. those countries whose views aligned with the North Atlantic Treaty Organization and capitalism
(i.e. the First World);
2. those countries whose views aligned with the Soviet Union and communism, (i.e. the Second
World);
3. and all the other countries, aligned with neither view, the “Third World.”

The Global South is an emerging term, used by the World Bank and other organizations, identifying
countries with one side of the underlying global North–South divide, the other side being the countries
of the Global North.

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-alliance
countries, came to be associated with impoverished states, while the First World was associated with
rich, industrialized countries.

The Third World was all the other countries. The mainly underdeveloped agricultural states and
nations of Africa, Asia, and Latin America, where the blessings of civilization benefited only a small ruling
elite and the corporations and upper classes of the former colonial powers.

In principle, the term Third World is outdated but still in use; today, the politically correct designation
would be less developed countries.

What makes a nation Third World?

Nowadays, the term Third World is more often replaced by the terms Least Developed Countries (UN) or
Low-Income Countries (World Bank.)

Whatever term is used, it serves to designate countries that suffer from:

 high poverty
 high child mortality
 low economic and educational development
 low self-consumption of their natural resources.
 Countries that are vulnerable to exploitation by large corporations and industrialized
nations.
Third world nations are the developing and technologically less advanced nations of Asia, Africa,
Oceania, and Latin America. These nations tend to have economies dependent on the developed
countries and are generally characterized as:
 poor with unstable governments,
 having high fertility rates,
 high gender-related illiteracy and are prone to diseases,
 the lack of a middle class,
 there is a huge impoverished population,
 and a small elite upper class that controls the country's wealth and resources,
 also have very high foreign debt levels
D. GLOBAL NORTH AND GLOBAL SOUTH

First World countries, such as the Unitéd 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.

The phrase “Global South” refers broadly to the regions of Latin America, Asia, Africa, and Oceania. It is
one of a family of terms, including “Third World” and “Periphery,” that denote regions outside Europe
and North America, mostly (though not all) low-income and often politically or culturally marginalized.
The use of the phrase Global South marks a shift from a central focus on development or cultural
difference toward an emphasis on geopolitical relations of power.

Here are some interesting facts when comparing the Worlds North to South
 The North holds 1/4 of the world population, and controls 4/5 of the income earned anywhere
in the world
 90% of the manufacturing industries are owned by and located in the North
 The South holds 3/4 of the world population, and has access to 1/5 of the world income
 These facts represent how much of a difference there is
 Although the South (overall) is less developed, there are many complex reasons why, and one
being that the North (developed countries) wasn’t/isn’t always entirely fair
 Developed countries have many projects trying to help the less developed countries, and the
politicians are recognizing that they aren’t doing enough
 The developed world has used the developing world for its own gain and cheaper raw materials
and labour
  Now, large brands (mostly in developed countries) are paying very low wages to young children
in developing countries to produce clothes and then ship them to developed countries where
we get super cheap deals and want to buy more than we need to(fast fashion)
 These brands need to increase the wage and improve the working conditions in these
factories/sweatshops

MODULE 5: THE GLOBAL CITY

Global city, an urban centre that enjoys significant competitive advantages and that serves as a hub
within a globalized economic system.

The term has its origins in research on cities carried out during the 1980s, which examined the
common characteristics of the world’s most important cities. However, with increased attention being
paid to processes of globalization during subsequent years, these world cities came to be known as
global cities. Linked with globalization was the idea of spatial reorganization and the hypothesis that
cities were becoming key loci within global networks of production, finance, and telecommunications.

Early research on global cities concentrated on key urban centres such as London, New York
City, and Tokyo. With time, however, research has been completed on emerging global cities outside of
this triad, such as Amsterdam, Frankfurt, Houston, Los Angeles, Mexico City, Paris, São Paulo, Sydney,
and Zürich. Such cities are said to knit together to form a global city network serving the requirements
of transnational capital across broad swathes of territory.

F. THEORIES GLOBAL STRATIFICATION

Global stratification refers to the hierarchical arrangement of individuals and groups in societies around
the world.

Stratification and Inequality

 Stratification refers to the range of social classes that result from variations in socioeconomic
status. Significantly, because SES measures a range of variables, it does not merely measure
economic inequality. For example, despite earning equal salaries, two persons may have
differences in power, property, and prestige. These three indicators can indicate someone’s
social position; however, they are not always consistent.

 Inequality occurs when a person’s position in the social hierarchy is tied to different access to
resources, and it largely depends on differences in wealth. For example, a wealthy person may
receive higher quality medical care than a poor person, have greater access to nutritional foods,
and be able to attend higher caliber schools. Material resources are not distributed equally to
people of all economic statuses.

THEORIES GLOBAL STRATIFICATION:

 1. 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 is known as the Columbian Exchange and the
second is the industrial Revolution.

WALT ROSTOW’S FOUR STAGES OF MODERNIZATION

1. The TRADITIONAL STAGE – this refers to societies that are structured around small, local
communities with production typically being done in family settings. Because these societies have
limited resources and technology, most of their time is spent on laboring to produce food, which creates
a strict social hierarchy. Examples: Feudal Europe and Early Chinese Dynasties
2. The TAKE-OFF STAGE – Rostow describes this stage as a short period of intensive growth, in
which industrialization begins to occur, and workers and institutions become concentrated around a
new industry.
3. The DRIVE TO TECHNOLOGICAL MATURITY – in which technological growth of the earlier
periods begins to bear fruit in the form of population growth, reductions in absolute poverty levels, and
more diverse job opportunities.
4. THE 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 all of their citizens have access to basic necessities.

2. DEPENDENCY THEORY AND THE LATIN AMERICAN EXPERIENCE

What is dependency?
It 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.

What is dependency Theory?

Dependency Theory is the notion that resources flow from a "periphery" of poor and
underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.
Two Main Sub-theories:
1. North-American Neo-Marxist Approach
2. Latin American Structuralist Approach

3. THE MODERN WORLD SYSTEMS THEORY

According to world systems theory as articulated by sociologist Immanuel Wallerstein;

Core countries are at the top of the global hierarchy as they can extract material resources and
labor from less developed countries. These core countries own most of the world’s capital and
technology, and have great control over world trade and economic agreements.
Semiperipheral countries generally provide labor and materials to core countries, which
benefits core countries but also increases income within the semiperipheral country.
Peripheral countries are generally indebted to wealthy nations, and their land and populations
are often exploited for the gain of other countries.
 Because of this hierarchy, individuals living in core countries generally have higher standards of
living than those in semiperipheral or peripheral countries.

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.

The Core and the Peripheral Nations

The countries of the world can be divided into two major world regions: the "core" and the
"periphery".
The core includes major world powers and the countries that contain much of the wealth of the planet.
The periphery has those countries that are not reaping the benefits of global wealth and globalization.

MODULE 6: MARKET INTEGRATION

Market Integration is when prices among different location or related goods follow the
same patterns over a long period of time. Similarly, when groups of rice often move
proportionally to each other and when this relation is very clear among different markets it is
said that the markets are integrated. Hence, it could be concluded that the market are related
to each other.

Role of International Financial Institutions in the Creation of Global Economy

An international financial institution is chartered by more than one country and therefore are
subjects to international law. Its owners or shareholders are generally national governments,
although other international institutions and other organizations occasionally figure as
shareholders.

The most prominent IFIs are creations of multiple nations, although some bilateral financial
institutions (created by two countries) exist and are technically IFIs. The best known IFIs were
established after world War II to assist in the reconstruction of Europe and provide mechanisms
for international cooperation in managing global financial system.

The International Financial Institutions (IFIs) are:

1. International Monetary Fund (IMF)
2. Multilateral Development Banks (MDBs) which include:
a. World Bank Group
b. African Development Bank
c. Asian Development Bank
d. Inter-American Development Bank
e. European Bank for Reconstruction and Development
Membership Composition on IFIs
1. only sovereign countries are admitted as member-owner
2. broad country membership to include borrowing developing countries and developed
donor countries
3. membership in regional development banks include countries around the world as
members (not limited to countries from the region)
4. has its own independent legal and operational states

Main Objectives

International Monetary Fund (IMF) provides temporary financial assistance to member

countries to help ease balance of payments adjustments.
Multilateral Development Banks (MDBs) provide financing for development to developing
countries through
– long term (with maturities of up to 20 years) at interest rates way below market rates.
Funding comes from international capital markets and relend to borrowing government in
developing countries.
– very long term loans (sometimes called credits with maturities of 30-40 years) at
interest rates below market rates. Funding for loans come from direct contributions by
government in the donor countries.
– Grant financing by some MDBs for technical assistance advisory service or project
preparation.
All IFIs are active in supporting programs that are for the global economy- in addition to their
primary role of financing and providing technical assistance to programs at the country level.

History of Global Market Integration in the Twentieth Century

 Labor market integration occurred between 1882 and 1936 in an area of Asia
stretching from South India to Southeastern China and encompassing the three
Southeast Asian countries of Burma, Malaya and Thailand.
 By the late nineteenth century, globalization, of which a principal feature was
the mass migration nineteenth century, globalization, of which a principal
feature was the mass migration of Indians and Chinese to Southeast Asia, gave
rise to both an integrated Asian labor market and a period of real wage
convergence. Integration if not, however, extend beyond Asia to include core
industrial countries. Asian and core areas, in contrast to globally integrated
commodity markets, showed divergent trends in unskilled real wages.
 By the 1880s steamships had largely replaced sailing vessels for transport within
Asia as well as to Western markets, and shipping fares had begun to fall sharply.
 Also, already underway was the migration of Indian and Chinese workers,
principally from the labor-abundant areas of Madras in India and the provinces
of Kwangtung (Guangdong) and Fukien (Fujian) in Southeastern China, to land-
abundant but labor inflows to these countries constituted the bulk of two of
 three main late nineteenth-and early twentieth-century global migration
movements, the other being European immigration to the New World.
Immigration to Southeast Asia was almost entirely in response to is growing
demand for workers which, in turn, derived from rapidly expanding demand in
core industrial countries for Southeastern Asian exports. Studies by Latham and
Neal (1983) and by Brandt (1985, 1989) established the development of an
integrated Asian rice market beginning in the latter part of the nineteenth
century.

Global Corporation

A global corporation is one that operates in more than one country, Particularly in
United States, the term can mean different things to different contexts, with the characteristics
of a global corporation varying accordingly.

Global Interstate System

World-systems are defined by the existence of a division of labor. The modern world-
system has a multi-state political structure (the intestate system) and therefore its division of
labor is international division of labor.
In the modern world-system, the division of labor consists of three zones according to
the prevalence of profitable industries or activities: core, semi periphery, and periphery.

The world-systems theory stresses that world-systems (and not nation states) should be
the basic unit of social analysis. Thus we should focus not on individual states, but on the
relations between their groupings (core, semi-periphery, and periphery).

The Agricultural Revolution and the Industrial Revolution

The first big economic change was the Agricultural Revolution. When people learned
how to domesticate plants and animals, they realized that it was much more productive than
hunter-gatherer societies. This became the new agricultural economy.
Farming helped societies build surpluses, meaning, not everyone had to spend their
time producing food. This, in turn, led to major developments like permanent settlements,
trade networks, and population growth.

The second growth 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 to access to a wider variety of
goods due to mass productions.
Capitalism and Socialism

There were two competing 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.
– Government plays an even larger role in socialism,

Socialist system or Socialism – means of production are under collective ownership. It rejects
capitalism's private property and hands-off approaches. Instead, in socialism, property is owned
by the government and allocated to all citizens, not only those with the money to afford it.
Socialism emphasizes collective goals, expecting everyone to work for the common good and
placing a higher value on meeting everyone's basic needs than on individual profit.

The Information Revolution

Ours is the time of the information revolution. Technology has reduced the role of
human labor and shifted it from a manufacturing -based economy to one that is based on
service work and the production of ideas rather than goods.
This has had a lot of residual effects on our economy. Computers and 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.

MODULE 7: GLOBAL GOVERNANCE

Global Governance

Sometimes referred to as world governance. Global is a movement towards political

cooperation among transnational actors, negotiating responses to problems that affect more than one
state or region. Institutions of global governance- the United Nations, the International Criminal Court,
the World Bank, etc.- tend to have limited or demarcated power to enforce compliance. The modern
question of world governance exists in the context of globalization and globalizing regimes of power:
politically, economically and culturally. In response to the acceleration of worldwide interdependence,
both between humankind and the biosphere, the term "global governance" may mean the process of
designating laws, rules, or regulations intended for a global scale.

Global governance is not a singular system. There is no "world government" but the many
different regimes of global governance do have commonalities.
Global Governance in the Twenty-First Century

There is a series factors behind the emergence of global governance. The first on the list must
be declining power of nation-states. If states themselves were "highly contingent flux", it would open
the possibility of the emergence of some form of global governance to fill the void.

A second factor is the vast flows of all sorts of things that run into and often right often through
the borders of nation-states. Then there is mass integration of people and their entry, often illegally,
into various nation-states. Another set of issues that has led to calls for global governance involves
horrendous events within nation-states the states themselves either torment and carry out, or are
unable to control.

Nation-states have long struggled to deal with problems like these through various interstate
systems, 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

Each state is autonomous unto itself and responsible within its own system of government to
those who are governed. The decisions, the conflict, and the resolution of that conflict are done through
the institutions of government established and codified in the particular state, whether or not through
elections.

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

There are regional organizations challenging state autonomy. The United Nations intervened in
Sudan because of the several years in civil war. More recently in Europe, specifically in Greece, it also
interfered in the Greek debt crisis.

Challenges from National/Identity Movements

It is important to know that a nation has cultural 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.

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 the
Southeast Asian Nations (ASEAN).

Global Social Movements

Social Movements are movements 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.

MODULE 8: THE RELEVANCE OF THE STATE AMIDST GLOBALIZATION

The state is distinctive political community with its own set of rules and practices and that is more or
less separate from other communities.

Four elements:
1. people- permanent population. This population does not refer to a nomadic people that
move from one place to another in an indefinite time.
2. territory- has clear boundaries. A territory is effectively controlled by third element,
government.
3. government- regulates relations among its own people and with other states.
4. sovereignty- it is important to differentiate the idea of nation form state.
Nation- refers to a people rather than any kind of formal territorial boundaries or
institutions.
State- if we talk about the Philippines as a state, we may refer to the Philippine
government, the Philippine territory, and its internal and external sovereignty.

A. Institutions that Govern International Relations

There are several international organizations that government of countries around the world
and individuals participate in. These include the United Nations, the International Court of Justice,
NAFTA, and NATO.

1. Peace Treaties and Military Alliances: The UN and NATO

Global politics entails relationship of countries and different governments and non-
governmental organizations. The United Nation is one of the leading political
organizations in the world where nation-states meet and deliberate.
2. Non-Governmental Organizations (NGOs)
Red Cross (Red Crescent in Muslim countries) is considered as a non-governmental
organization (NGO). NGOs are not tied to any country. This allows them to operate
freely throughout the world.
3. Global Economic Associations: The WTO and NAFTA
 The next group is an economic association --- WTO. It is made up of the countries
around the world and was created with the goal of increasing free trade. Countries
therefore, can buy and sell goods from on another without placing taxes on imports or
tariffs.
Another famous economic organization is NAFTA. This is an economic treaty between
the United States, Canada, and Mexico in which the three countries trade freely without
taxing each other.
B. Globalization and Globalism
Globalization would be better described as the “increase or decline in the degree of globalism”
1. What is globalism?
-refers to the network of connection that transcends distances of different countries in
the world.
C. Informationalism
Globalism is tied to the notion of networks. For Castells (2000), “networks constitute the
fundamental pattern of life, of all kinds of life”. It was previously mentioned that in the present
and even in the past, the world is 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. This 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.

D. Global Citizenship
1. Citizenship- associated with rights and obligations, for instance, the right to vote and the
obligation to pay taxes.
2. Global Citizenship- Caecelia Johanna van Peski (as cited in Baraldi, 2012) defined global
citizenship “as a moral and ethical disposition that can guide the understanding of individuals or
groups of local and global contexts, and remind them of their relative responsibilities within
various communities.”

Three Approaches to Global Resistance

1. Trade protectionism- involves the systematic government intervention in foreign
trade through tariffs and non-tariff barriers in order to encourage domestic producers
and deter their foreign competitors.
2. Fair Trade – aims at a more moral and equitable global economic system in which, for
instance, the price is not set by the market; instead, it is negotiated transparently by
both consumers and producers.
3. relates to Helping the Bottom Billion- based on Collier (2007) increasingly aid is only
one of the many measures that are required.
VII. ASSESSMENT

Assignment/Output - 20%
Quizzes - 20%
Periodical Examination - 60%

VIII. REFERENCES:

Ariola, Mariano M. The Contemporary World. Manila: Unlimited Books, 2018 Aldama, Prince Kennex
Reguyal. The Contempory World. Manila: Rex Book Store, 2018
https://www.investopedia.com/insights/worlds-top-economies/
https://www.who.int/topics/millennium_development_goals/about/en/
https://journals.sagepub.com/doi/pdf/10.1177/1536504212436479
https://muse.jhu.edu/article/585671/pdf
https://medium.com/@vesabarileva/the-north-south-divide-of-countries-and-the-entire-world-
e656ba588c8b
https://www.nationsonline.org/oneworld/third_world.htm
https://www.slideshare.net/irishsumido/contemporary-world-chapter-8-introduction-global-city
https://www.britannica.com/topic/global-city
https://socialsci.libretexts.org/Bookshelves/Sociology/Book
%3A_Sociology_(Boundless)/08%3A_Global_Stratification_and_Inequality/8.02%3A_Global_Stratificatio
n/8.2A%3A_Global_Stratification_and_Inequality