Chapter 1

Economic imperialism is a situation in which one nation assumes economic power or influence over
the others. Globalization is a phenomenon. Schottle (1995) states that “globalization stands for quite a
large public spread across the world as one of the defining terms of the 20th century social
consciousness.”

Rosenau (1996) recognizes such a tendency when he states that: “Globalization is not the same as
globalism, which points our aspirations for an end state of affairs wherein values are shared by or
pertinent to all the world’s five billion people, their environment, their roles as citizens, consumers
and producers with an interest in collective action designed to solve common problems. Nor it is
universalism—values that embrace all humanity.”
For McGrew (1990), globalization is described as something that is comprised of multiple sameness
and interconnectedness that go beyond the nation-states. It is a process in which individuals and
organizations in one part of the world are affected by the activities, affairs, and convictions on another
part of the globe.
Appadurai (1996) proposed five dimensions of global cultural flow, namely ‘ethnoscapes,’
‘technoscapes, ‘mediascapes,’ ‘financescapes,’ and ‘ideoscapes.’ These landscapes are created due to
movements of people, technologies, information through media, money and commodities, and
political ideas.
For Steger (2005 & 2014a), the term globalization should be limited to a set of intricate social
processes that modify prevailing social statuses based on the modern regime of self-dependent nation-
states. Steger (2005) uses the term globality to mean globalization as a condition. For him, globality
denotes “future social condition characterized by thick economic, political, and cultural
interconnections and global flows that make currently existing political borders and economic barriers
irrelevant.”

Moreover, globalization is defined as an ideology. Steger (2014b) defines ideology as a system of

widely shared ideas, patterned beliefs, guiding norms and values, and ideals accepted as truth by some
groups. Steger (2014b) uses the term globalism to mean globalization as an ideology. He then
identifies five core claims of globalism.

First, globalization is about the liberalization and global integration of markets; second, globalization
is inevitable and irreversible; third, nobody is in charge of globalization; fourth, globalization benefits
everyone; and fifth, globalization furthers the spread of democracy in the world.

Globalization is also defined differently depending on someone else’s expertise, experience, and
perspective. Through globalization, the world has become a borderless world. Communication
technology makes the world shrink. McLuhan (1964) believes that media has connected the world in
ways that created a global village. Global village was McLuhan's ideal in the 1960s that has become a
reality during the later part of the century. More so, globalization is referred to as cultural
imperialism. It is the conviction that there is a “better” culture.

One objective working definition is that of Steger’s (2013): “Globalization refers to the expansion and
intensification of social relations and consciousness across world-time and world-space.” From this
definition, four attributes of globalization can be drawn. First, globalization has various forms of
connectivity such that it can be economic, political, or cultural. Second, globalization allows for the
expansion and stretching of social relations. Third, globalization intensifies and accelerates social
exchanges and activities. Fourth, globalization occurs worldwide.

Globalization may be defined and conceptualized from different lenses, but an interdisciplinary
definition is necessary. Some scholars consider it as a process, a condition, or an ideology. Experts
from different fields of social sciences also define globalization based on their specialization or
expertise. But a working definition has to encompass all definitions of and notions about
globalization. Steger’s definition, for the purpose of this module, is the most unbiased working
definition.
Chapter 2

Steger's (2014) definition of globalization as the expansion and intensification of social relations and
consciousness across world time and space implies that there are various forms of connectivity. This
section focuses on the economic dimension.

Economic globalization refers to the expanding interdependence of world economies. Shangquan

(2000) attributes this to the growing scale of cross-border trade commodities and services, flow of
international capital, and wide and rapid spread of technology. The flow of international capital can be
observed in foreign direct investments (FDI), a type of investment in which a company establishes a
business in another country for production of goods or services and still takes part in the management
of that business. This flow of international capital can also be observed in foreign portfolio
investments, trade flows, external assistance and external commercial borrowings, and private loan
flows.

In 2008, the International Monetary Fund (IMF) defined economic globalization as a historical
process, the result of human innovation and technological progress. “It refers to the increasing
integration of economies around the world, particularly through the movement of goods, services, and
capital across borders” (IMF 2008). Economic globalization can be traced from the time when there
was economic movement in Asia, Africa, and Europe through the Silk Road, a network of trade routes
that connected the East, particularly China, and the West. Benczes (2014) identifies four
interconnected dimensions of economy, namely: (1) globalization of trade of goods and services; (2)
globalization of financial and capital markets; (3) globalization of technology and communication;
and (4) globalization of production.

The most fitting definition of economic globalization is that of Szentes’ (2003): the process of
“making the world economy an ‘organic system’ by extending transnational economic processes and
relations to more and more countries and by deepening the economic interdependencies among them.”

After recognizing the definition of economic globalization, it is important to discuss the different
agents that bring about the interdependencies of global economies. There are different views on who
or what the actors are that facilitate economic globalization. On one hand, some scholars believe that
it is still the nation-state but of different levels. Boyer and Drache (1996) state that the role of nation-
states as manager of the national economy is being redefined by globalization. Although such is the
case, nation-states still act as buffer to negative effects of globalization. In support, Brodie (1996)
calls the government as the “midwives” of globalization. It means that nation-states are still relevant
despite assuming a global perspective and act as mediators between the effects of globalization and
the national economy. Government policies and regulations either permit or deny the smooth
connection among world economies. On the other hand, some experts claim that the actors are now
the global corporations. Ohmae (1995) argues that the nation-state has ceased to exist as the primary
economic organization unit in the global market.

An international structure for money, power, and interest was created in order to set a system in the
financial and economic relations in the modern day. The establishment of an international monetary
system (IMS) is one of the actors that facilitate economic globalization. IMS refers to internationally
agreed rules, conventions, and institutions for facilitating international trade, investments, and flow of
capital among nation-states. Historically, there are three global IMS—the gold standard, the Bretton
Woods System, and the European Monetary System (EMS). The gold standard functions as a fixed
exchange rate regime, with gold as the only international reserve and participating countries
determine the gold content of national currencies (Benczes, 2014). In the Bretton Woods Systems, the
US dollar was the only convertible currency. Thus, it was agreed by 44 countries to adopt the gold-
exchange standard. Also, two financial institutions were established: the International Bank for
Reconstruction and Development (IBRD) and the IMF. The former, now known as the World Bank, is
responsible for post-war reconstructions. The latter aims to promote international financial
cooperation and strengthen international trade. Another form of integration is the establishment of the
EMS. It came about after the collapse of the Bretton Woods System. EMS was successful in the
stabilization process of exchange rates. It then prompted the foundation of a new European Economic
and Monetary Union (EMV). National currencies were abandoned and member states delegated
monetary policy onto a supranational level administered by the European Central Bank (European
Commission, 2008). The development of international trade and trade policy is also a form of such
economic integration. Trade patterns must not be stagnant. Flow of goods must be voluntary but
restricting it might affect the relationship between and among states.

With the nation-states, global corporations, and international monetary systems as actors of economic
globalization, the world is now confronted with a number of ongoing debates as to whether economic
globalization unites or divides the world. Benczes (2014) believes that economic globalization fosters
universal economic growth and development. For one, globalization allows a worldwide distribution
of incomes. Also, economic globalization reduces poverty (World Bank, 2002). Lastly, globalization
creates mutual dependence between developing and developed countries (Arrighi, 2005). Some
developing countries rely on developed countries for employment and income while the latter relies
on the former for raw materials and services like labor.

On the other hand, some observers of economic globalization believe that it divides the world further.
First, one might observe that the sources of goods and services are exploited. Second, economic
globalization does not benefit all nations (World Bank, 2002). There is an uneven experience among
nations. Workers in TNCs are paid less compared to their counterparts in the companies’ home
countries. Third, Wallerstein (2005) claims that capitalism created the different levels of wages in the
economic arena of world systems. It further divides the world for it leads to inequality according to
expertise, experience, and skills.

In conclusion, economic globalization affects all nations and citizens through the increasing
integration of economies around the borderless world. Its important players are the nation-states,
global corporations, and the international monetary systems. Though some people believe that
economic globalization brings unity of all economic movements, others believe that globalization
furthers the separation among nation-states around the world.

Chapter 3

After the Second World War, almost all countries around the world faced the great challenge of
bringing their feet back on the ground. As a substitute to the unsuccessful League of Nations, the
United Nations (UN) was established on October 24, 1945. Earlier in 1944 at the Monetary and
Financial Conference in Bretton Woods, New Hamsphire (US), the first government-sponsored
international financial institutions were established—the World Bank (WB) and the International
Monetary Fund (IMF). There are two types of international financial institutions: intergovernmental
and private.

In the 1960s, regional development banks were established: the Asian Development Bank (ADB) in
1960 and the African Development Bank (AfDB) in 1964. As financial institutions, ADB and AfDB
are anchored on the goal of fostering sustainable development in their respective member countries.

There are also private international financial institutions such as Citigroup and Merrill Lynch.
Citigroup is an American multinational investment banking and financial corporation. On the other
hand, Merril Lycnh is the wealth management division of the Bank of America. Investments can be in
the form of foreign direct investments, stocks, or financial loans.

Both intergovernmental and private financial institutions help facilitate the functionality of a global
economy by lending money to their member states and global corporations. Clearly, these global
institutions are active agents in fostering social and economic development by providing various
forms of help to improve the national and the global economies.

Global market integration is the result of the establishment of a global economy that involved the
homogenization of trade and commerce. Harvey (1990) sees that cities and countries were able to
extend their reach beyond borders and patterns of trade and technology because of developments in
shipping and navigation. This was observable in the development of maritime transport throughout
history.

The integration of the global market started when big American corporations began to emerge after
the Second World War with the rise of new conglomerates. Later, Japan and Europe followed suit.
The rise of American, Japanese, and European global Corporations paved the way for the further
development of international trade. Gereffi (2001) identifies three structural periods in the existence
of global corporations after the war. They are investment-based period (1950-1970), trade-based
period (1970—1995), and digital globalization (1995 onwards). The development of global
corporations can be examined from the sources and the levels of foreign direct investments (FDIs).
The United Nations Conference on Trade and Development (UNCTAD) defines FDIs as funding
made to acquire lasting interest in enterprises operating outside the economy of the investor in which
their purpose is to gain an effective voice in the management of the enterprise (UNCTAD, 2011).

The ascent of global corporations is a reflection of a globalized market integration. These global
corporations have common attributes. Neubauer (2014) identifies three of them—an agent of desired
economic development, an economic prominence, and a very powerful entity that can create a crisis.
These corporations may hit their target of economic development by making their consumer products
available in many parts of the globe. On the whole, international financial institutions play an
important role in the social and economic development programs of developing and transitional
nations. They are instrumental in the functionality of the global economy which is reliant on global
corporations.

Chapter 4

Weber (1997) describes the state as a compulsory political organization with a centralized government
that maintains the legitimate use of force within a certain territory. On the other hand, the concept of
nation emphasizes the organic ties that hold groups of people together and inspire a sense of loyalty
and belonging—i.e., ethnicity, language, religion, and others (Schattle, 2014). Combining these two, a
nation-state can then be defined as a political community that emanates from Civic society to
legitimately execute peace. Thus, the civic society is the basis of the people's oneness.

Though some scholars like Appadurai and Ohmae claim that globalization has superseded the
individual function and jurisdiction of nation-states, this is still arguable. In fact, they still play vital
roles in the way globalization establishes a borderless world. Nation-states can manipulate
competitive advantages with international and political issues, transnational civil society
organizations, and multinational companies. On the other hand, they are also accountable for a host of
international norms and standards, find themselves in subordinate positions to protect their economy,
and face new kinds of pressures of supranational integration and focus of local fragmentation
(Schattle, 2014). However, if nation-states no longer have power in today’s globalized world, then
why does the United Nations (UN), with its increasing number of states, remain relevant in global
decision making?

Globalization has, in a way, reshaped the role and functions of nation-states as governing bodies in
their particular territories.

First, globalization is seen to impose a forced choice upon nation-states. The second effect of
globalization on nation-states is the establishment of economic and political integrations. The third
effect of globalization is the establishment of international laws and principles. The fourth effect of
globalization is the rise of transnational activism (TNA). The fifth and last effect of globalization is
the creation of new communications network.

In order to facilitate connections among nation-states, intergovernmental organizations (IGOs) were

established. Their aim is to foster strong economic, political, cultural, educational, and technical
intergovernmental relationships.

Established in 1967, the Association of Southeast Asian Nations (ASEAN) now has 10 member
states. Its aims are:
1) to accelerate economic growth, social progress, and cultural development in the region;
2) promote regional progression;
3) advance peace and sustainability;
4) promote active and beneficial Cooperation and mutual assistance on matters of common interest in
the economic, technical, cultural, administrative, and scientific fields;
5) provide assistance to each other in the framework of training and research installations in the
educational, professional, technical, and administrative spheres;
6) work hand in hand for more effective and greater use of agriculture and industries;
7) advance Southeast Asian research; and 8) preserve close and beneficial collaboration with current
international and regional institutions with similar aims and purposes (asean.org). Indonesia,
Malaysia, Philippines, Singapore, Thailand, Vietnam, Laos, Myanmar, and Cambodia are the
members of ASEAN.

The European Union (EU), an IGO with 28-state members, was established in November 1993. Its
goals are:
1) to promote peace, its values, and the well-being of its citizens;
2) offer freedom, security, and justice without internal borders;
3) uphold sustainable development based on balanced economic growth and price stability;
4) combat social exclusion and discrimination;
5) promote scientific and technological progress;
6) enhance economic, social, and territorial cohesion and solidarity among member countries;
7) respect cultural and linguistic diversity; and 8) establish an economic and monetary union
(europa.eu).

The World Trade Organization (WTO) has 164 member-states. Its objective is to ensure that trade
runs as smoothly, predictably, and freely as possible.

The intensification of relations among nation-states gave birth to the idea of internationalism and
globalism. The former is the theory and practice of interdependent collaboration while the latter is an
attitude. Internationalism is basically anchored on the opinion that nationalism should be outrun
because links that bind people of different countries are more powerful than those that disconnect
them (Anora, 2014).

On the other hand, globalism emerged as an attitude that seeks to understand all the interconnections
of the modern world and to highlight patterns that underlie them. It pursues to describe and explain a
world that is characterized by a network of connections that span multicontinental distances.

Overall, the global interstate system is a facet of contemporary political globalization that seeks to
form collaboration among nationstates through the establishment of intergovernmental organizations.
It is rooted on the idea of internationalism. Experts on interstate relations cannot discount the
numerous effects of neoliberalism on the rise of new communication networks utilized by
governments.