WESLEYAN UNIVERSITY-PHILIPPINES

Cushman Campus
Mabini Extension, Cabanatuan City
Philippines, 3100

Subject Code: GEC 8

Subject Title: The Contemporary World

MODULE 4: The Global Interstate System

Learning Outcomes
At the end of this lesson, students should be able to:
1. Explain the effects of globalization on governments;
2. Identify the institutions that govern international relations; and
3. Differentiate internationalism from globalism.

Learning Activities:
Asynchronous Discussion: On the canvas tab “Assignment”, Module 4: The Global Interstate System,
answer the given questions to further understand the concepts discussed in this module.
Reference: A Course Module for The Contemporary World (Nephtaly Joel B. Botor, Eric Paul D. Peralta,
Raphael M. Ferrer, Jennifer Marie S. Amparo, Teri-Marie P. Laude)

Introduction
In a globalized society, we observed a greater flow of capitals, goods, services, and people. This is supported by
developments and modernization of transport, communication, and financial services in the world. However, with
this, the traditional state system is now becoming limited to address globalizing issues and patterns.
Internationalist thinkers argue that the key motivating principles of traditional state systems of power and
sovereignty runs counter on the need for greater political and economic cooperation among different states and
people (Daly, 1999). Thus, in this module, we will further unpack how globalization affects national governments
and countries. We will also identify the global institutions that govern international relations. Here, we contend
that these institutions include non-state organizations and private sector. Lastly, we will differentiate
internationalism from globalism. Definitions of concepts are important in order for us to critically understand a
certain phenomenon and as a basis of our opinion and review of such cases.

Chase-Dunn (1981:20) defines interstate system as – “System of unequally powerful and competing states in
which no single state is capable of imposing control on all others. These states are in interaction with one another
in a set of shifting alliance and wars and changes in relative power of states upsets any temporary set of alliances,
leading to a restructuring of the balance of power.”

Thus, an interstate system is the form of governance for a globalization

Now he who supplies seed to the sower and bread for food will supply and will multiply your seed for sowing.
He will increase the harvest of your righteousness.
- 2 Corinthians 9:10

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 Definition of Terms:
 Global Interstate System – an institutionalized arrangement of governance that addresses regional or globalized
issues that go beyond the scope of a nation-state (Chase-Dunn, 1981)
 Internationalism – puts emphasis on diversity and celebrates multiculturalism, while globalism focuses more on
the economic aspect of the exchanges among countries and society.

Body:
Effects of Globalization on Governments
As the world becomes more interconnected through politics, trade, and communications, the role of nation-states
and government are also shifting. Thus, national and local policies are not only based on local context but also
international and global realities. One example of a global treaty is the Montreal Protocol on Substances that
Deplete the Ozone Layer, which aims to phase out the production of numerous substances responsible for ozone
depletion, signed in August 26, 1987 with 46 country signatories (US EPA, 2017). A definitive evidence of the
Montreal Protocol’s success was discussed by NASA and projected that how international agreements and efforts
could fight borderless challenges and issues specifically by domesticating international norms.

However, there is another side of globalization that negatively affects local governments and local communities.
A local government would like to attract major global investors in their community by setting up for instance their
manufacturing firm in the area. This could create jobs for the local people and generate income for local
businesses. However, it entails converting tracks of agricultural land into an industrial zone. Farmers will be
displaced and agricultural production of the area will be affected. The global corporation is also demanding lower
taxes and lower income wage in order to finalize their investment in the area. They argue that they will create
more jobs and more income from the local community and government. How could local governments balance
improved economic local social and environmental well-being? Here, we see how local governments are heavily
influenced by powerful corporate entities.

Institutions that Govern Globalization

With the growing globalization, the governance of global relations goes beyond nation-state governments. Nation-
state governments’ scale and scope are limited in addressing regional and global issues like climate change,
cybercrime, and global financial crises. Works by authors like Dryzek (2012) and Castells (2008) show the
growing emphasis on the role of non-state actors in global governance. These non-state actors include NGOs,
advocacy networks, voluntary associations, and interest groups (Castells, 2008). Their congenial and more
approachable strategies appeal the community and even other state actors and has a potential to organize across
areas (Dryzek, 2012).
\The shift of authority to actors above and below the state is termed as glocalization” or “internal globalization”
(Roudomentof, 2005: 113). As the role of the nation-state and governments shifted, participation of these new
actors has opened up (Boli & Thomas, 1999). One of the most renowned modern examples of the active role of
non-state actors in global movements is in the 1992 UN Conference on Environment and Development. The
world saw the most active and broadest role of non-state actors in pushing for more just and sustainable
development (Bouman-Dentener & Devos, 2015).

There are several institutions that govern international relations and affairs. First and foremost is the United
Nations. With 192 member states, it is seen as the facilitator of global governance (Meyer, 2011). Another is
regional commissions, which are group of officials from different countries that instruct and debate, and are in

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charge of making certain laws promulgate certain rights for economic and social development (CEPAL et.al.,
2015). Examples of these are the Economic Commission for Africa (ECA), Economic Commission for Europe
(ECE), Economic Commission for Latin American and the Carribbean (ESCLAC), Economic and Social
Commission for Asia and the Pacific (ESCAP), Economic and Social Commission for Western Asia (ESCWA).

The World Bank (WB) is an international financial institution that provides loans to countries for capital projects,
established during the Bretton Woods Conference in 1944 and include other members like the International Bank
for Reconstruction and Development (IBRD), International Development Association (IDA), International
Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA) (The World Bank, n.d.). The
institutions provide loans to middle income countries and even private sectors in developing countries to create
markets and improve local economies.

Other examples:
International Organization Key Role/s Sources/Websites
Looks at the stability of the
International international monetary system by
Monetary monitoring global economy, lends www.imf.org
Fund (IMF) to countries and provides policy
and technical advisory functions to
members (Maverick, 2019)
Regulates international trades,
World ensures smooth flow of trade, and
Trade provides a forum for negotiations www.wto.org
Organization (WTO) for trade agreements among
countries and regions (IMF, 2019)
World Responsible for global researches
Health on medicines and vaccines www.who.org
Organization (WHO) including World Health Report and
Survey
Thirty five member countries aim
to stimulate economic progress and
Organization world trade by providing a
for Economic Cooperation platform to compare policy www.oecd.org
and Development (OECD) experiences and identify good
practices in domestic and
international economic policies and
programs of its members
International Deals with labor problems and
Labor international labor standards and www.ilo.org
Organization (ILO) social protection for workers
Food and Agriculture Leads international efforts to defeat
Organization of the hunger, eliminate food insecurity www.fao.org
United Nations (FAO) and malnutrition, and increase
resilience of livelihoods and food

UNESCO Contributes to peace and security www.unesco.org

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 by promoting international
collaboration through educational,
scientific, and cultural reforms
International Civil Aviation For regulations of international air www.icao.int
Organization (ICAO; transport; shipping and prevention www.imo.org
International Maritime of pollution at sea; developing www.itu.int
Organization (IMO); standards on ICT; international www.wipo.int
International Telecommunication intellectual property rights
Union (ITU); standards
The World Intellectual Property
Organization (WIPO)

Globalism vs Internationalism
These two terms are commonly used interchangeably and pertain to the increasing interconnectivity of countries
and people through communications, transport, and technology (Roudometof, 2005). Internationalism is defined
as political, economic, and cultural cooperation between nations, while globalism is an ideology based on the
belief that flow of people, goods, and information should flow freely across national borders (Roudometof, 2005).
Sargent (2008) argues that internationalism emphasizes diversity and celebrates multiculturalism, while globalism
focuses more on the economic aspect of the exchanges among countries and society.

SUMMARY:
In this lesson we discussed how globalization and the internationalization of economics have affected traditional
national governance and government. Although there are benefits of globalization for addressing borderless
challenges like climate change, pollution, among others. There are also limits and challenges posed in the local
sovereignty and self-determination of nations and communities.

Institutions that assist in global governance are also discussed which includes UN and international finance and
development organizations, the growing recognition of the role of non-state actors like civil society groups in
international affairs.

Lastly, the difference between globalism and internationalism. While the globalism focuses on the economic
dimensions on globalization, internationalism focuses on culture and social interactions.

ASSESSMENT:
To further understand the concepts laid down, answer the following questions:
1. What does domesticating an international norm mean?
_____________________________________________________________________________________
_____________________________________________________________________________________
2. What is an example of globalization initiatives affecting local government?
_____________________________________________________________________________________
_____________________________________________________________________________________
3. Name an international organization and identify its role in global governance.
_____________________________________________________________________________________
_____________________________________________________________________________________

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BIBLIOGRAPHY:
 Definitions of Globalization: A Comprehensive Overview and a Proposed Definition. Program on the
Geopolitical Implications of Globalization and Transnational Security, 6(1-21), Al-Rodhan, N.R., &
Stoudmann, G. (2006)
 An Environmentally Sustainable Global Economy. A Competitive Model, Carfi, D., Donato, A., &
Schiliro, D. (2018)
 The New Oxford Handbook of Economic Geography. Oxford University Press. Clark, G.L., Feldman,
M.P., Gertler, M.S., & Wojcik, D. (Eds.). (2018).
 Geographers and Globalization: (Yet) Another Missed Boat?: Transactions of the Institute of British
Geographers, 29(1), 5-26. Dicken, P. (2004)
 Non-State Actors in the Globalization of the Economy, Gherghel, Laura, (n.d.)
 Globalizations, Global Histories and Historical Globalities. Globalization and Global History. Gills, B.K.,
& Thompson, W.R. (2006)
 The Future of Globalization. Cooperation and Conflict 37.3 (2002): 247-265, Hirst, Paul, and Grahame
Thompson
 The IMF and the World Bank. Retrieved from International Monetary Fund:
https://www.imf.org/en/About/Factsheets/Sheets/2016/07/27/15/31/IMF-World-Bank
 Global Civil Society. Cambridge: Cambridge University Press. Keane, J. (2003)
 Activists Beyond Borders: Advocacy Networks in International Politics. Ithaca, NY: Cornell University
Press. Keck, M., & Sikkink, K. (1998)
 Global Actors: Networks. Elites and Institutions. Politics. Doi: 10.193/acreforce/9780190228637.013.9.
Madsen, Mikael Rask and Christensen, Mikkel Jarle (2016)
 The State and Globalization: Denationalized Work and Internal Power Shifts. Unpublished paper part of a
multi-year research project. Sassen, S. (2006)
 Economic Globalization: trends, risk and risk prevention. Economic & Social Affairs, CDP Background
Paper 1. Shangquan, G. (2000)
 Globalization. Sterling Publishing Company, Inc. Steger, M.B. (2010)
 The Retreat of the State: The Diffusion of Power in the World Economy, New York: Cambridge
University Press. Stange, S. (1996)
 Economic Globalisation: dialectics, conceptualisation and choice. Contributions to Political Economy,
24(1), 13-32. Sugden, R., & Wilson, J.R. (2005)
 World Economics 2. The Political Economy of Development. Globalisation and System Transformation.
Szentes, T. (2003)
 UCTC (1991). University Curriculum on Transnational Corporations: Vol. III International Law. New
York: United Nations
 World Investment Report: Transnational Corporations, Extractive Industries and Development.
Switzerland. 294 pages. UNCTAD (2007)
 The rise and future demise of the world capitalist system: Concepts for comparative analysis.
Comparative studies in society and history, 16(4), 387-415. Wallerstein, I. (1974)
 The modern world-system I: Capitalist agriculture and the origins of the European world-economy in the
sixteenth century (Vol. 1). University of California Press. Wallerstein, I. (2011)
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 The G7, International Finance, and Developing Countries. Shaping a New International Financial System:
Challenges of Governance in a Globalizing World. Wood, D. (2019)

Prepared by: Checked by:

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Arnold C. Eugenio Ferman Lazatin
CAS Faculty Program Head
Department of Humanities
and Social Sciences

Noted by:

Dr. Marietta B. Agustin

Dean
College of Arts and Sciences

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