THE CONTEMPORARY WORLD of connection that span multi-continental

CHAPTER 1: THE STRUCTURES OF distances – NYE, 2012

GLOBALIZATION - attempts to understand all the
interconnectedness of the modern world.
Parochialism – an outlook that is limited to Scapes – different kinds of globalization occur
one’s immediate community. on multiple and intersecting dimensions of
Parochial – a person who is concerned only integration.
with his/ her family, village, or even country. DIFFERENT KINDS OF GLOBALIZATION
Parochial Person – is, thus, close-minded. by Arjun Appadurai
Globalization 1. Ethnoscapes –refers to the global
– is a complex phenomenon that occurs in movement of people.
multiple levels. 2. Mediascapes – the flow of culture
- it is an uneven process that affects people 3. Technoscapes – circulation of mechanical
differently. goods and software.
- primarily an economic process. 4. Financescapes – denotes the global
- it usually pertains to the integration of circulation of money.
national markets to a wider global market 5. Ideoscapes – is the realm wherein political
signified by an increase in free trade. ideas moves around
Interdisciplinary approach – they view the
process of globalization through various lenses 1.2 THE GOLBALIZATION WORLD
that consider multiple theories and ECONOMICS
perspectives. IMF (International Monetary Fund)
- it is the approach used in the General - is a historical process representing the result
Education (GE). of human innovation and technological
progress.
The best scholarly description by Manfred - characterized by the increasing integration of
Steger economies around the world through the
“the expansion and intensification of social movement of goods, services, and capital
relations and consciousness across world-time across borders.
and across world-space” The World Bank (International Bank for
Reconstruction and Development)
Expansion – refers to both the creation of new - is an international development organization
social networks and the multiplication of that owned by 189 countries.
existing connections that cut across traditional, - Its role is to reduce poverty by lending money
political, economic, cultural, and geographic to the government of its poorer members so
boundaries. that they can control their economies and the
Intensification – refers to the expansion, standard of living of their people.
stretching, and acceleration of these networks Economic Globalization
Globalism – is a widespread belief among - involves the long-distance flows of goods,
powerful people that the global integration of services and capital and the information and
economic markets is beneficial for everyone as perceptions that accompany market exchange
it spreads freedom and democracy across the (NYE, 2002)
world. High-frequency trading
- seeks to describe and explain nothing more - sales between different cities in a matter of
than a world which is characterize by networks seconds
Trading System The Great Depression
Silk Road – the oldest known international - 1920s to 1930s
trade route. - Caused by the gold standard according to
- it had a network of routes that connected some economist.
different parts of the ancient world from China - it limited the amount of circulating money and
to what is Middle East today and to Europe. reduced the demand consumption.
- it was international and not global because it - it limited government’s capacity to print
had no ocean routes that could reach the money and increase money supply.
American continent. Barry Eichengreen
- silk was the most profitable products traded - economic historian
through this network. - argued that the recovery of the United States
Han Dynasty of China (130BCE) - Ottoman began after they abandoning the gold
Empire (1453 BCE) standard. - was able to free up money to spent
- traders utilized silk road regularly but ended on reviving the economy.
in the Ottoman Empire in 1453 BCE. Fiat Currency
Dennis O. Flynn and Arthuro Giraldez - currencies that are not backed by precious
- globalization began “when all important metals whose values are determined by their
populated continents began to exchange cost relative to other currencies.
products continuously – both with each other - this allows governments to freely and actively
directly and indirectly via other continents – manage their economies by increasing and
and in values sufficient to generate crucial decreasing the amount of money in circulation
impacts on all trading partners. as they see fit.
Galleon Trade (1571) The Bretton Woods System (1944)
- the age of mercantilism. - a global economic system that aims to ensure
- also part of mercantilism (16th to 18th century) a longer-lasting peace through a network of
- connected Manila and Acapulco in Mexico. financial institutions that would promote
- the first time that the Americas where directly economic interdependence and prosperity.
connected to Asian trading routes. - Influenced by John Maynard Keynes,
- There was restrictions when monarchies “Economic crisis occurs when money is not
imposed high tariffs and forbade colonies to spent and therby not moving.”
trade with other nations. - It should be intervened by the government
- it was in 1867 that open trade system (Global Keynesianism).
emerged when UK and US and other The 2 Financial Institutions
European countries adopted the gold standard. 1. International Bank for Reconstruction
- International Monetary Conference in Paris. and Development (IRBD or World Bank)
- to allow more efficient trade and prevent - responsible for funding positive reconstruction
Isolationism. projects.
- but still a very restrictive system, it compelled 2. International Monetary Fund
gold reserve. - global lender that helps countries from credit
First World War crisis.
- countries depleted their gold reserves to fund General Agreement on Tariffs and Trade
their armies. (1947)
- many abandoned the gold standard. -main purpose is to reduce tariffs and other
-they instead adopted floating currencies than hindrances to free trade.
were no longer redeemable in gold.
Global Keynesianism homes.
- Increases government expenditures and Challenges to Neoliberalism
lower tax to stimulate demand and pull the - Russia’s Oligarchy
global economy in depression. - only the individuals and groups who
Neoliberalism and Its Discontents had accumulated wealth under the previous
- 1940s to early 1970s. communist order had the money to purchase
- Political Movement that espouses economic these industries.
liberation as a means of promoting economic - Global Financial Crisis 2008-2009
development and securing political liberty. -2007-2008 the greatest financial downturn
- during this period, the governments poured in since the great depression.
money into their economies, allowing people to - caused by unregulated bad investments in
purchase more goods and increase demand housing loans.
for these products. - trade imbalances between developed and
- as demand increase, the prices increase. developing countries.
- Companies would earn more.
- more money to hire workers World Trade Organization (WTO)
- keynesian economists believed this was - a new organization founded in 1995 to
necessary for economic development. continue the tariff reduction under GATT.
Stagflation Washington Consensus
- persistent high inflation combined with high - 1980s through the early 2000s
unemployment and stagnant demand in a - controlled the global economic policies.
country’s economy. - argued that government expenditures should
Reasons for stagflation be kept to a bare minimum in order to minimize
- Oil embargo led to increased oil prices. debt.
Organization of Arab Petroleum Exporting - advocate the privatization of government-run
Countries (OAPEC) the arab member- services such as water, electricity,
countries of the Organization of Petroleum communications, and transportation. Thinking
Exporting Countries or OPEC that the free market can deliver best results.
-western economies were affected. - pressured governments, particularly the
- stock market crashed in 1973-1974. developing world, to reduce tariffs and open up
- It ended the Bretton Woods System. their economies, arguing that it is the quickest
Challenges to Keynesianism way to progress.
- Friedrich Hayek and Milton Friedman - they believed that this “shock therapy” was
- argued that the governments practice of necessary for long-term economic success.
pouring money into their economies caused 2000s
inflation by increasing demand for goods - continued to decrease which was leading to a
without increasing supply. looming crisis taking advantage of the “cheap
- Government intervention in economies distort housing loans” American's began building
the proper functioning of the market. houses that were beyond their financial
- a new idea was born called Neoliberalism. capacities.
Neoliberalism Proponents Mortgage-backed securities (MBS)
- US Pres. Ronald Reagan - a combination of multiple mortgage that they
- British PM Margaret Thatcher assume would pay a steady rate.
- they justified reduction of government
spending by equating national economies to
Sub-prime mortgages Internationalization
- high-risked mortgages. - explore the deepening of interactions
2007 between states.
- home prices stopped increasing, as supply THE ATTRIBUTES OF TODAY'S GLOBAL
caught up with demand. SYSTEM
September 2008 Four Major Characteristics in today’s world
- the risky cycle came to a breaking point when politics.
big investments banks such as Lehman 1. Independent Countries
Brothers went bankrupt. - states that rule themselves
- it sent ripples to the world 2. These countries communicate with one
- three of Iceland’s largest commercial banks another through diplomacy.
have defaulted because of this credit crunch. 3. United Nations (UN)
- between 2007-2008 Iceland’s debt climbed - institutions that enable these interactions.
more that 7 times 4. International Institutions take on lives of
- until now including Spain and Greece. their own in addition to enabling meetings
- The United States recovered quickly thanks between governments.
to a Large Keynesian-style stimulus package, Nation-state
that President Barack Obama pushed for in his - a country, but referred as nation-state by
first months in the office. academic scholars.
ECONOMIC GLOBALIZATION TODAY - is a relatively modern phenomenon in human
- people who benefited the most from free history, and people did not always organize
trade were the advance nations like United themselves as countries.
States, Japan, and the other member-countries - is composed of two non-interchangeable
of the European Union. words.
- Covid-19 slowed down the global trade - not all states are nation, not all nations are
considerably, and major economies recorded states.
negative trends Christendom
- The WTO-led reduction of trade barriers, - the entire Christian World.
known as trade liberalization What is the difference between nation and
Transnational Corporation (TNCs) state?
- the beneficiaries of global commerce. State
- are conocerned more with profits than with - in layman’s terms, state refers to a country
assisting the social programs of the and its government
governments hosting them. - has four attributes:
International Economic Integration 1. it exercises authority over a specific
- is a central tenet of globalization. population, which is referred to as citizens.
2. it governs a specific territory.
CHAPTER 3: A HISTORY OF GLOBAL 3. has a structure of government that crafts
POLITICS: CREATING AN INTERNATIONAL various rules that people (society) follow.
ORDER 4. has sovereignty over its territory.
International Relations Sovereignty
- the study of trade deals between states. - refers to internal and external authority.
- also the study of political, military and other - Internally, no individuals or group can
diplomatic engagements between two or more operate in a given national territory by ignoring
countries. the state.
-Externally, sovereignty means that a state’s Napoleon Code
policy and procedures are independent of the - in every country conquered, the french
interventions of other states. implemented this which forbade birth
NATION privileges, and encouraged freedom or religion,
according to Benedict Anderson and promoted meritocracy in government
- a nation is an “imagined community”. service.
- it is limited because it does not go beyond a Anglo and Prussian
given :official boundary” and because rights - defeated Napoleon in the Battle of Waterloo
and responsibilities are mainly the privilege in 1815, ending the latter’s mission to spread
and concern of the citizens of the nation. his liberal code across Europe.
- being limited means that a nation has its Concert of Europe
boundaries. - to prevent another war and to keep their
- often limit themselves to people who have system privileges, the royal powers created a
imbibed a particular culture, who speak a system that, in effect, restored the Westphalian
common language, and who live in a specific System.
territory. - was an alliance of “the great powers” -
- allows one to feel a connection with a United Kingdom, Austria, Russia, and Prussia -
community of people even if he/she will never that sought to restore the world of monarchical,
meet all of them in his/her lifetime. hereditary, and religious privileges of the time
THE INTERSTATE SYSTEM before the French Revolution and the
Treaty of Westphalia Napoleonic Wars.
- which was a set of agreements signed in - it was an alliance to restore the sovereignty of
1648 to end the Thirty years’ war between the states.
major continental powers of Europe. - The Concert’s Power and authority lasted
- after a war between the Catholics and from 1815 to 1948 at the dawn of World War 1.
Protestants, The Holy Roman Empire, Spain, Security Council
France, Sweden and Dutch Republic designed - the most powerful groupings in the UN, has a
the Westphalian System which would avert core of 5 permanent members, who all have
wars in the future by recognizing that the treaty veto powers over the council’s decision-making
signers exercise complete control over their process.
domestic affairs and swear not to meddle in Internationalism
each other’s affairs. - the desire others imagine a system of
Westphalian System heightened interaction between various
- provided stability for the nation of Europe until sovereign states, particularly the desire for
it faced its first major challenge by Napoleon increased cooperation and solidarity among
Bonaparte. states and peoples.
- Bonaparte believed in spreading the - comes in different forms, but the principle
principles of the French Evolution - Liberty, may be divided into two broad categories:
Equiality and Fraternity - to the rest of Europe, Liberal internationalism and Socialist
and thus challenged the power of kings, the Internationalism.
nobility, and religion in Europe.
Napoleon Wars
- lasted from 1803 - 1815 with Napoleon and
his armies marching all over much of Europe.
 influenced by mazzini, who became one of the
20th century’s most prominent Internationalists.
Liberal internationalism (late 18th century -Like Mazzini, Wilson saw nationalism as a
Immanuel Kant - german philosopher the prerequisite for internationalism.
first thinker of LI) - because of his faith in nationalism, he
- without a form of government, he argued, the forwarded the principle of determination - the
international system would be chaotic. belief that the world’s nations had a right to a
- therefore states, like citizens of countries, free and sovereign government.
must give uo some freedoms and establish a - he hoped that these free nations y by being
continuously growing state consisting of such would they become democracies
various nations which will ultimately include the because only by being such would they be able
nations of the world.” to build a free system of international relations
- In short, Kant imagined a form of global based on international law and cooperation.
government. - Wilson in short become the most notable
Jeremy Bentham (late 18th Century - British advocate for the creation of the League of
Philosopher) Nations.
- advocated the creation of “international law” - At the end of World War 1 in 1918, he pushed
that would govern inter-state relations. to transform the League into a venue for
- Bentham believed that objective global conciliation and arbitration to prevent another
legislators should aim to propose legislation war.
that would create “the greatest happiness of all - For his efforts he was awarded the Nobel
nations taken together”. Peace Prize in 1919.
Guiseppe Mazzini ( 19th Century Italian Axis Power
Patriot) - Hitler’s Germany, Mussolini’s Italy, and
- the first thinker to reconcile nationalism with Horihito’s Japan - who were the ultra-
liberal internationalism. nationalists that had an instinctive disdain for
- Mazzini was both advocate of the unification internationalism and preferred to violently
of the various Italian-speaking mini-states and impose their dominance over other nations.
a major critic of the Matternich System. - the internationalism eclipsed in the midst of
- he believed in a republican government and this war between the Axis Power and Allied
proposed a system of free nations that Powers (United States, United Kingdom,
cooperated with each other to create ab France Holland and Belgium)
international system. tasks specific international organizations
- for him, free, independent states would be the World Health Organization (WHO)
basis of an equally free, cooperative International Labour Organization (ILO)
international system.
- he argued that, if the various Italian mini-state Karl Marx
could unify, one could scale up the system to - one of Mazzini’s most vehement adversaries.
create, for example, a united states of Europe.. - german socialist philosopher who like mazzini
- was a nationalist internationalist who believes was an internationalist, but he did not believe
that free unified nation-states should be the in nationalism.
basis of global cooperation. - emphasized economic equality, dividing the
world into classes rather than countries.
Woodrow Wilson Capitalist class
- United States President (1913-1921) - owners of factories, firms, and other”means of
production”. across the world, using methods of terror if
necessary. Today, parties like this are referred
to as Communist Parties
Proletariat Class
- included those who did not own the means of Communist International (Comintern) 1919
production, but instead worked for the - founded by Russian Revolutionary Vladimir
capitalists. Lenin to spread socialist revolutions across the
Marx and his Co-author, Friedrich Engels world.
- believed that in a socialist revolution seeking - served as the central body for directing
to overthrow the state and alter the economy, Communist parties all over the world.
the proletariat “had no nation”. - this was not only more radical than the
- they opposed nationalism because they Socialist International; it was also less
believed it prevented the unification of the democratic because it closely followed the top-
world’s workers. down governance of the Bolsheviks.
- instead of identifying with other workers, -they feared Comintern, believing it was
nationalism could make workers in individual working in secret to stir up revolutions in their
countries identify with the capitalists of their countries (which was true)
countries. World War II (1939-1945)
- Marx died in 1883 but his followers soon - a problem arose when the Soviet Union
sought to make his vision concrete by joined the Allied Powers in 1941
establishing their international organization. - US and UK did not trust Soviet Union their
fight against Hitler’s Germany
The Socialist International (SI)
- to appease his allies, Lenin’s successor,
- was a union of European Socialist and labor
Joseph Stalin dissolved the Comintern in 1943.
parties established in Paris in 1889.
- After war, however, Stalin re-established the
- although short-lived, the SI’s achievement
Comintern as the Communist Information
included the declaration of Labor Day on May
Bureau (Cominform).
1.
- when the US, the Soviet Union, and the Great
- and the creation of International Women’s
Britain partitioned war-torn Europe into their
Day.
own areas of influence, the Soviet Union took
- Most Importantly, it initiated the successful
over the countries in Eastern Europe.
campaign for an 8 hour workday.
- Soviet Union collapsed in 1991
- collapsed during the World War 1.
-SI re-established itself in 1951.
Russian Revolution 1917
- For the Post war period, however, liberal
- Czar Nicholas II was overthrown and
internationalism would once again be
replaced by a revolutionary government led by
ascendant
Bolshevik Party and its leader, Vladimir Lenin.
- the best evidence of this is the rise of the
- this new state was called the Union Soviet
United Nations as the center global
Socialist Republics or the USSR.
governance.
Union Soviet Socialist Republics or the
USSR.
- the Bolsheviks did not believe in obtaining
power for the working class through elections.
- rather, they exhorted the revolutionary
“vanguard” parties to lead the revolutions