Week 1 Contemporary World

Globalization 2. World Polity Theory – state remains an

important component of world society, but
 Refers to the processes by which more
primarily attention goes to the global cultural
people across large distance become
and organization.
connected in more different ways.
 Deterritorialization the process through All-encompassing world-polity and its
which the constraints of physical space associated with world culture, which supplies a
lose their hold on social relations. set of cultural rules or scripts that specify how
 Is an interaction of people and primarily institution around the world should deal with
an economic process of integration common problem.
which has social and cultural aspects as
Key elements is a general, globally legitimated
well
model of how to form a state.
 The process by which capitalism
expands across the globe as powerful Carriers of global principles, these organizations
economic actors seek profit in global then help to build and elaborate world culture
markets and impose their rules and world society further.
everywhere – Also known as
Neoliberalism
3. World Culture Theory – the world culture is
Means different things to different people
indeed new and important, but less
Korean Pentecostal missionary – new homogeneous than world polity.
opportunity to spread the faith and convert lost
Globalization is a process of relativization.
souls abroad.
World society thus consists of a complex set of
Dominican immigration in the U. S. – growing
relationships among multiple units in the global
new roots while staying deeply involve in the
field.
home village.
Globalization compresses the world into a single
Indian television viewer – sampling variety of
entity, and people necessarily become more
new shows, some adopted from foreign
and more aware of their relationship to this
formats.
global presence.
Chinese apparel worker – chance to escape
Central importance to this process is the
rural poverty by cutting threads off designer
problem of globality : how to make living
jeans.
together in one global system meaningful or
American executive – managing a far-flung even possible.
supply chain to get products to stores.
EMERGENCE OF GLOBALIZATION
Filipino global justice advocate – rules of global
Globalization has been happening for a long
game that favor the rich North over the South
time. (16th century Europe as the original
poor.
source.)
THEORIES OF GLOBALIZATION
Europeans established worldwide trade
1. World-System Theory – a perspective that connections on their own terms, brought their
globalization is essentially the expansion of the culture to different regions by settling vast
capitalist system around the globe. areas, and defined the ways in ways the
different people were to interact with each
Capitalist world-system originated in the 16th
other.
century, when Europeans traders established
enduring connections with Asia, Africa and the Late 19th century the period of intense
America. globalization, when million migrated, trade
generally expanded and new norms and
The core of the system, the dominant classes
organization came to govern international
were supported by strong states as they
conduct.
exploited labor, resources, and trade
opportunities, most notably in peripheral areas. In the 20th century, the movement of people,
goods and finance across national borders was
Central purpose is capital accumulation by
at least as free and significant as it is today.
competing firms, which go through cycles of
growth and decline
In the 2nd half of 20th century was significant between homogeneity and heterogeneity is
period of globalization in its own right. World integral of globalization.
War II gave globalization a new impetus.
IS GLOBALIZATION HARMFUL
Obscured by Cold War divisions, the
transformation of world society – in terms of Globalization may be harmful to the well-being
linkages, institutions and culture and (fears) of individuals, countries and cultures :
consciousness was nevertheless profound.
If the market is the driving force - it is bound to
exacerbate (worsen) inequality by creating
winners and losers.
GLOBALIZATION AND THE EXPANDING MARKET
If makes world homogeneous - many cultures
Expanding Market - is the process of offering a
are in troubles
product or service to a wider section of an
existing market or into a new demographic, Loss of local autonomy may mean that the more
psychographic or geographic market. people will be vulnerable (defenceless) to
economic swings, environmental degradation,
An economic system operating along capitalist
and epidemics.
lines now encompasses most region of the
world, and economic motivates always have INTERDISCIPLINARY UNDERSTANDING OF
been important in creating global linkages, GLOBALIZATION
globalization takes place in many sphere for
many reasons. 1. Political Scientist

Economy may be a driving force in creating political activity increasingly takes place at the
global change in some periods, but it effects global level.
depend on what happens outside of world Under globalization, politics can take place
market. above the state through political integration
HOMOGENEOUS WORLD schemes such as the European Union, the
ASEAN integration where Philippines is involved
• Certain activities or institutions become though intergovernmental organizations such as
global, they must displace existing local the IMF, the WB, and the WTO.
variable activities and institution.
Political activity can also transcend national
• If there are more linkages, global borders through global movements and Non-
institutions, and global values, Governmental Organization (NGO)
presumably this means that more
people will have more in common. Civil society organizations act globally by
forming alliances with organizations in other
REASONS WHY GLOBALIZATION WILL NOT countries, using global communication system,
MAKE THE WORLD HOMOGENEOUS and lobbying international organizations and
actors directly, instead of working through their
1. General rules and models are interpreted in
national governments.
light of local circumstances.
2. Economist
Regions respond to similar economic
constraints in different ways; countries still have Integration through international trade of
great leeway in structuring their own policies; markets in goods and services as reflected in
the same television program means different variety of possible measures (direct measures of
things to audiences; such as McDonald's adopts barriers such as tariffs and transport costs,
its menu and marketing to local tastes. trade volumes and price related measures).
2. Growing similarity provokes reactions. foreign direct investment, increased trade in
intermediate product, international outsourcing
Advocates for many cultures seek to protect
of services like the call center industry, and
their heritage or assert their identity. (action of
international movement of persons like our
indigenous people to claim their right to cultural
OFWs.
survival.
Include the international spread of ideas, from
3. Cultural and political differences have
consumer tastes (like Coke and Hershey's) to
themselves become globally valid.
intellectual ideas like technology patents and
The notion that the people and countries are management principles and accounting
entitled to their particularity of distinctiveness standards.
is itself part to global culture. the tension
3. Sociologist Globalization means the spread of free-market
capitalism to virtually every country in the
an on-going process that involves
world.
interconnected changes in the cultural and
social spheres. 2. Globalization is inevitable and irreversible.

it involves the spread and diffusion of Globalization reflects the spread of irreversible
ideologies-values, ideas, norms, beliefs and market forces driven by technological
expectations - that foster, justify and provide innovations that make the global integration of
legitimacy for economic and political national economies inevitable.
globalization.
market globalism is almost intertwined with the
fuelled by globally integrated communication deep belief in the ability of markets to use new
systems like social media, media coverage of technologies to solve social problems far better
the world's elite and their lifestyles, the than any alternative course.
movements of people around the world via
Governments, political parties, and social
business and leisure travel, and the
movements had no choice but to adjust to the
expectations of these travellers that the host
inevitability of globalization.
societies will provide amenities and experiences
that reflects their own cultural norms. since the emergence of a world based on the
primacy of market values reflects the dictates of
4. Historian
history, resistance would be unnatural,
historian follow rather than lead the way. irrational and dangerous.

Globalization is not new as a phenomenon but 3. Nobody is in charge of globalization.

the word itself took hold only recently which
liberal concept of the self-regulating market.
records shows first use in English in 1930 and
shows that usage soared suddenly in 1990's. the link between globalization-market and the
adjacent idea of leaderlessness is simple : if the
Globalization defined most succinctly as the
undisturbed working of the market indeed
interconnection of places far distant from each
preordain a certain course of history, then
other.
globalization does not reflect arbitrary agenda
Globalization is still too much entangled with of a particular social class or group.
world history, global history and transnational
Globalists are not in charge in the sense of
history.
imposing their own political agenda on people.
MARKET GLOBALIZATION rather, they merely carry out the unalterable
imperatives of a transcendental force much
 an idea that reflects the concepts of
larger than narrow partisan interest.
globalization.
 seeks to endow globalization with free like the market-globalist rhetoric of historical
market norms and neoliberal meanings inevitability, the portrayal of globalization as a
leaderless process seeks to both depoliticize the
FIVE CORE CLAIMS OF MARKET GLOBALISM
public debate on the subject and demobilize
1. Globalization is about the liberalization and global justice movements.
global integration of markets.
4. Globalization benefits everyone.
is anchored in the neo-liberal ideal of the self-
the adjacent idea of benefits for everyone is
regulating market as the normative basis for a
usually unpacked in material terms such as
future global order.
economic growth and prosperity.
vital functions of free market - its rationality and
when linked to globalism's peripheral concept,
efficiency, as well as its alleged ability to bring
progress, the idea of benefit for everyone taps
about greater social integration and material
not only into liberalism's progressive worldview,
progress - can only be realized in a democratic
but also draws on the powerful socialist vision
society that values and protects individual
of establishing an economic paradise on earth -
freedom.
albeit in the capitalist form of a worldwide
the more you let market forces rule and the consumerist utopia.
more you open your economy to free trade and
television, radio and internet frequently place
competition, the more efficient your economy
existing economic, political, and social realities
will be.
within a neo-liberal framework; sustaining the
claim that globalization benefits everyone • Neoliberalism - a theory of political
through omnipresent affirmative images, economic practices that proposes that
websites, banner advertisements, and sound human well-being can best be advance
bites by liberating individual entrepreneurial
freedoms and skills within an
5. Globalization furthers the spread of
institutional framework characterized
democracy in the world.
by a strong private property rights, free
links globalization and market to adjacent markets and free trade.
concept of democracy, which also plays a
THE ROLE OF THE STATE IN NEOLIBERALISM
significant role in liberalism, conservatism, and
socialism. to create and preserve an institutional
framework appropriate to such practice.
globalists tend to treat freedom, free trade, and
democracy as synonymous. to guarantee, for example the quality and
integrity of money
GLOBALIZATION EXPERIENCE
set up those military, defence, police, and legal
no one experiences globalization in all its
structures and functions required secure
complexity but globalization is significant
private property rights and to guarantee, by
insofar as it reshapes the daily lives of billion of
force if need be, the proper functioning of
people.
markets.
experiencing globalization, does not mean that
if markets do not exists (in areas such as land,
some abstract, impersonal force overwhelms
water, education, health care, social security or
individuals.
environmental pollution) then they must be
people participate and respond in different created, by the state, if necessary.
ways.
state interventions in markets must be kept to a
they can shape, resist, absorb, or try to avoid bare minimum.
globalization.
CHARACTERISTICS OF NEOLIBERALISM
they can seek opportunity in it, feel the harm of
1. Government must limit subsidies
it, or lament the power of it.
2. Make a reforms to tax laws in order to
globalization is a central reality; for others, it is
expand tax base
still on the margins of their lives.
3. Reduce deficit spending
in short no experience of globalization.
4. Limit protectionism
formation of a new world society does not
involve all people in the same way, and it does 5. Open markets
not create the same texture in everyone's life.
6. Removal of fixed exchange rates
but there are some commonalities in the global
7. Back deregulation
experience of globalization.
8. Privatization
to one degree of another, globalization is real to
almost everyone. PRIVATIZATION
it envelope everyone in new institution. • is the process of transferring an
enterprise or industry from the public
it poses a challenge, in the sense that even
sector to the private sector.
marginally affected groups must take a stance
toward the world. • some of the government owned and
controlled corporations were already
FROM LAISSEZ FAIRE TO NEOLIBERALISM
transferred from public to private
• Laissez faire - is the belief that sector:
economies and businesses function best
1. Philippine Airlines (PAL)
when there is no interference by the
government. It comes from the French, 2. Philippine Long Distance
meaning to leave alone or to allow to Corporation (PLDT)
do. It is one of the guiding principles of
capitalism and a free market economy. 3. Manila Electric Company
(Meralco)
 4. Manila Waterworks and THE INTERNATIONAL MONETARY SYSTEM
Sewerage System (MWSS) now
Maynilad Water Services and ⮚ The most central area in international
Manila Water Company. economy (important transactions in the
international economy all depend on
THE GLOBAL ECONOMY the availability of money and credit.)
• ECONOMIC GLOBALIZATION ⮚ The IMF's primary purpose is to ensure
the stability of the international
⮚ the increasing integration of
monetary system—the system of
economies around the world
exchange rates and international
particularly through the
payments that enables countries (and
movement of goods, services
their citizens) to transact with each
and capital across borders.
other.
⮚ the movement of people and
⮚ Is a system that forms rules and
knowledge across international
standards for facilitating international
borders.
trade among the nations in the world
ECONOMIC GLOBALIZATION VS.
⮚ Functions
INTERNATIONALIZATION
1. Current account surplus
the latter is about the extension of economic
activities of nation state across borders while 2. Capital accounts
the former is functional integration between
internationally dispersed activity. 3. Balance of payments

economic globalization is rather a qualitative 4. Statiscal discrepancy

transformation that just a quantitative change. 5. Change in Reserves
Economic term globalization is nothing but a Requirements
process making the world economy an organic 6. The total of a country’s account,
system by extending transnational economic capital account, statistical
process and economic relations to more and discrepancy and change of
more countries and deepening the economic reserves = zero – balance of
interdependence among them. payments
INTERCONNECTED DIMENSIONS OF ECONOMIC 1.Current account surplus
GLOBALIZATION
A current account surplus indicates that the
1. The globalization of trade of goods and value of a country's net foreign assets (i.e.
services assets less liabilities) grew over the period in
2. The globalization of financial and capital question, and a current account deficit
markets indicates that it shrank. Both government and
private payments are included in the
3. The globalization of technology and calculation.
communications
When credits exceed debits, the country enjoys
4. The globalization of production a current account surplus, meaning that the
rest of the world is in effect borrowing from it.
ECONOMIC GLOBALIZATION PHENOMENON
A current account surplus increases a nation's
⮚ Silk Road – the best known example of net assets by the amount of the surplus. Capital
archaic globalization, which connected accounts
Asia, Africa and Europe.
2. Capital accounts
⮚ Adopting Fernand Braudel’s innovative
The capital account is part of a country's
concept of long duration, i.e. slow
balance of payments. It measures financial
moving, almost imperceptible,
transactions that don't currently affect a
framework for historical analysis.
country's income, production, or savings. Their
⮚ World system analyst identify the origin value is based on what they are expected to
of modernity and globalization with the produce in the future.
birth of 16th century long-distance
trade.
 is the part of the balance of payments which FOUR MONETARY REGIME
records net changes in a country's financial
1. Classical gold standard (1870 – 1914)
assets and liabilities.
2. Gold exchange standard
3.Balance of payments
3. Bretton Woods system (1944-1973)
the difference in total value between payments
into and out of a country over a period. 4. Non-system of floating and fixed
exchange rate – 1973 to present
These transactions consist of imports and
exports of goods, services and capital, as well as 1. Classical gold standard (1870 – 1914)
transfer payments such as foreign aid and
remittances. ⮚ the classical standard was a fixed rate
regime in which governments
is the record of all international financial announces and adhere to specific
transactions made by a country's residents. ... exchange rate from their currencies in
A balance of payments deficit means the relation to gold.
country imports more goods, services and ⮚ Countries agreed to convert paper
capital than it exports. It must borrow from money into a fixed amount of gold. It is
other countries to pay for its imports. a monetary system where a country’s
The main body of the balance of payments currency or paper has a value directly
therefore informs us about a state’s over-all linked to gold.
position in terms of financial assets and ⮚ By making the national currency values
liabilities. more stable, the gold standard
facilitated trade and other transactions
4. Statistical discrepancy between economies
is equal to gross domestic product less gross ⮚ This was based on orthodox liberal
domestic income. These two measures are, in ideas in some important respects.
principle, the same. The difference reflects less ⮚ Its primary objective was to promote
than perfect source data. monetary openness and stability
through the maintenance of stable
 is the difference between demand and supply exchange rates.
in national accounts. Even though by definition
⮚ These liberal ideas to combat
the items should be equal in the national
unemployment, and countries were
economy, they usually deviate from one
expected to sacrifice domestic social
another due to deviation in statistical sources
objectives for the sake of monetary
and they are not forced to be equal in the
stability. Thus the poorest countries
Finnish system of accounts.
often assumed the largest burden of
5.Change in Reserve Requirements adjustment through sacrifices in welfare
and employment.
The reserve requirement is the proportion of
customers' deposits a bank is required by the Gold Exchange Standard Regime (1914 to 1944)
Fed to hold in reserve without loaning out. .
⮚ Based on fixed exchange rates
 required reserve ratio is sometimes used as a among currencies.
tool in monetary policy, influencing the ⮚ Because gold is in scarce supply
country's borrowing and interest rates by and depends on new
changing the amount of funds available for discoveries, a gold exchange
banks to make loans with. standard permits more
flexibility in increasing
international reserves.
CENTRAL Bank ⮚ British effort to maintain a gold
exchange standard continued
A central bank, reserve bank, or monetary
for several years, they
authority is an institution that manages
eventually failed.
a state's currency, money supply, and interest
⮚ Monetary relations for much of
rates. 
the interwar period marked by
Each country has a central bank (oversees the competitive devaluations, a
monetary system the country) shift to floating rather thafixed
exchange rates, destabilizing
speculative capital flows, and
 increased trade protectionism, 2. Is there confidence problem with
which culminated in the Great the existing reserve assets?
Depression. 3. What adjustment options do
⮚ Thus, governments could no reserve-currency countries have in
longer easily sacrifice the dealing with their balance-of-
welfare of their citizens to payments deficits?
maintain the gold exchange
Creation of IMF
standard, and one government
after responded to economic 1. Created to stabilize the exchange rates
problems during the interwar and provide member states with short-
period by turning away from term loans for temporary balance-of-
international openness. payments problems
2. Members were required to peg their
3. The Bretton Woods System Regime
currencies to gold or to the US dollar
⮚ Post World War II monetary which was valued at $34 per ounce of
regime, based on post-war gold.
interventionist liberal 3. Member states were also to contribute
compromise. to pool of national currencies that
⮚ A gold exchange standard in would be available for the IMF loans to
which the value of each deficit countries.
country’s currency pegged to 4. Member state was given a quota based
gold or U.S. dollar ; to provide on its economic relative importance.
sufficient monetary stability to The Role of US Dollar
permit resumption of normal
international trade and 1. Central banks could hold their
flexibility and assistance so that international reserves in two forms :
countries could pursue gold and foreign exchange (in any
domestic objectives related to proportion they chose)
employment and inflation. 2. US balance-of-trade surplus in the late
1940s contributed to a dollar shortage.
⮚ This was drafted in 1944 and is 3. US distributed dollars throughout the
a vital piece of financial history, world through economic aid and
held in Mount Washington military expenditures.
Hotel in Bretton Woods, New 4. US provided public goods to Europeans
Hamsphire in United States. and others, opening its market to
imports, providing long-term loans and
⮚ Ratified by 44 members of
grants.
allied nations.
5. European Recovery Program or
⮚ Created International Monetary Marshall Plan and supplying the US
Fund (IMF) dollar was the main source of
international liquidity.
Major elements of internationalist liberal
The Role of US Dollar
1. The post-war gold exchange standard
which was in fact an adjustable-peg Under the IMF guidance other countries at
exchange rate rather than a fixed times changed the par value of their currencies
exchange rate standard. relative to gold and the US Dollar, but the
2. International Monetary Fund (IMF), dollar’s value remain fixed at $35 per ounce of
which would provide short-term loans gold.
to countries.
This was designed to ensure that the dollar
3. Support national controls over capital
would be as good as gold, thus the US agreed to
flows.
exchange all dollars held by foreign central
banks and treasuries for gold at official rate.

With this regime, the US was also receiving

private benefit of seignorage.
Economists questioned the adequacy of
reserve assets in this regime Seignorage is the profit that come from
seigneur or sovereign power
1. Are there sufficient reserves for
liquidity or financing purposes?
The US gained financial power and influence, GLOBAL ACTORS IN ECONOMIC GLOBALIZATION
and it was largely exempt from the discipline
1. International Government Organization
the international financial system imposed to
(IGO) – refers to an entity created by
other countries.
treaty, involving two or more nations,
A major change that raised questions about US to work in good faith, on issues of
control over monetary relations pave the way of common interest. It strives for peace,
the growth of the Eurocurrency market. security and deal with economic and
social question. (ex. UN, WB, NATO,
Eurocurrencies are national currencies traded
ASEAN).
and deposited in banks outside the home
country, this was developed in Europe. 2. International Non-Government
Organization – works towards solutions
Shift Toward Multilateralism
that can benefit undeveloped countries
The balance-of-payment deficit of US continued that face backlash of economic
to increase, dollar slipped to negotiated globalization. It is non-profit, voluntary
currency from top-currency. citizen’s group organized, local, national
and international. Performs various
Top-currency is favoured for international services and humanitarian functions,
monetary transaction because other has strong bring concern to government, advocate
confidence in the strong economic position of and monitor policies and encourage
the issuing state. political participation through provision
Negotiated currency does not benefit from this of information. (ex. Red Cross,
high degree confidence, so the issuing state Greenpeace and Amnesty International)
must offer inducements to other to continue 3. Multinational Corporation – corporations
accepting its leadership, and must be open to which have overseas branches. One of the many
more multilateral management. changes they have brought to developing
The G-10 (Group of Ten) countries is to increase in automation.

Group of countries that agreed to participate in automation – the use of various control
the General Arrangement to Borrow (GAB) systems for operating equipment such as
established in 1962 to provide IMF additional machinery with minimal or reduced human
fund to increase its lending ability. They lend to intervention.
IMF $6 billion in their own currencies. It may damaged less automated local firms and
Members are : Belgium; Canada; France; require workers to develop new skills in order
Germany; Italy; Japan; Netherlands; Sweden; to transition into the changing economy, leaving
United Kingdom and United States. some behind.

In 1964 Switzerland was admitted as member Corporations have also outsourced in recent
but the name remain G-10 years

The IMF meeting in Jamaica in January 1976 Example of Multinational Corporation: GE, Ford
finally legalized freely floating system. Each Motors, Fujitsu, GlaxoSmithKline and Adidas
government was permitted to decide whether EFFECTS OF ECONOMIC GLOBALIZATION ON
to establish a par value for its currency or to DEVELOPING COUNTRIES
shift to floating rates.
1. Increased Standard of Living- gives
Floating exchange rate is a regime where the governments of developing countries
currency price is set by the forex market based access to foreign lending. When these
on supply and demand compared with other funds are used in infrastructure
currencies. including roads, health care, education
In a fixed exchange regime, monetary policy and social services, the standard of
must be subordinated to the requirement of living will increase.
maintain the peg, while floating regime allows 2. Access to New Markets – globalization
monetary policy to be set autonomously, as leads to freer trade between countries.
deemed appropriate in the domestic context. This is one of the largest benefits to
developing countries. Home-grown
industries have access to a much wider
international trade. The growth allows
 companies to develop new technologies Some of these were created after WWII to assist
and produce new products and services. the reconstruction of Europe and other
countries affected by the devastation of the
3. Widening Disparity of Income – influx of
foreign companies can also increase the WORLD BANK
wage gap between those who are
Formerly known as International Bank for
educated and those who are not. Over
Reconstruction and Development (IBRD),
the longer term, education levels will
founded in 1944.
rise, but in short term, some of the poor
will become poor. Originally focuses on rebuilding countries
devastated by WWII, it shifted to
4. Decreased Employment – the influx of
infrastructure such as dams, electrical grids,
foreign companies in developing
irrigation systems, and roads. Later, in 1956, it
countries increase employment in many
became able to lend to private companies
sectors, specially for skilled workers.
and financial institution in developing
Automation in the manufacturing and
countries. In 1960 it put greater emphasis on
agricultural sectors lessen the needs of
the poorest countries. It further rounded out its
unskilled labor and unemployment rises
ability to connect global financial resources to
in these sectors.
the needs of developing countries.
INTERNATIONAL FINANCIAL INSTITUTION (IFI)
The largest development institution. The Bank
1. World Bank (WB) Group works with country governments, the
private sector, civil society organizations,
2. International Monetary Fund (IMF)
regional development banks, think tanks, and
3. European Investment Bank (EIB) other international institutions on issues
ranging from climate change, conflict, and food
4. Islamic Development Bank (IDB) security to education, agriculture, finance and
5. Asian Development Bank (ADB) trade.

6. European Bank for Reconstruction and The vital source of financial and technical
Development (EBRD) assistance to developing countries around the
world
7. CAF-Development Bank of Latin
America Goals for the world to achieve by 2030:

8. Inter-American Development Bank 1.End extreme poverty by decreasing the

Group (IADB) percentage of people living less than $1.90 a
day to no more than 3%.
9. African Development Bank (AfDB)
2.Promote shared prosperity by fostering the
10. Asian Infrastructure Investment Bank income growth of the bottom 40% for every
(AIIB) country
WEEK 2 – INTERNATIONAL FINANCIAL Five organizations:
INSTITUTIONS
1.The International Bank for Reconstruction and
INTERNATIONAL FINANCIAL INSTITUTION Development (IBRD) – lends to governments of
(IFI) middle-income and creditworthy low-income
Institutions that provide financial support via countries.
grants and loans for economic and social 2.The International Development Assistance
development activities in developing countries. (IDA) – 1960 – provides interest free loans –
They provide loans, grants and technical called credits – and grants to governments of
assistance to government as well as loans to the poorest countries. Together with IBRD and
private businesses investing in developing IDA make up the World Bank.
countries 3.The International Finance Corporation (IFC) –
They also play a significant role in the 1956 – the largest global development
privatization and regulation of public utilities institution focused exclusively on private sector
and natural resources. 4.The Multilateral Investment Guarantee
Usually chartered by more than one country Agency (MIGA) – 1988 – it promotes foreign
and its owner and shareholders are national direct investment into developing countries
government to support economic growth, reduce poverty,
and improve people’s live through offering Source of Funds
political risk insurance (guarantees)to investors
Most sources for IMF loans are provided by
and lenders
member countries, primarily through their
5. The International Centre for Settle of payment of quotas
Investment Disputes (ICSID) – provides
Multilateral and bilateral borrowings work as a
international facilities for conciliation and
second and third line of defense by providing a
arbitration of investment dispute
temporary supplement to quota sources.
THE INTERNATIONAL MONETARY FUND (IMF)
Concessional lending and debt relief for low-
Also as the Fund, founded in 1944 (by 44 allied income countries are financed through separate
nations). The primary purpose is to ensure contribution-based trust fund
the stability of the international monetary
Lending Capacity
system – the system of exchange rates and
international payments that enables countries IMF can use its quota-funded holdings of
and their citizens to transact with each other. currencies of financially strong economies to
finance lending.
At present it has 189 member countries,
working to foster global monetary The member countries that participate in the
cooperation, secure financial stability, financing of IMF transaction are selected by the
facilitate international trade, promote high Executive Board on a periodic basis and include
employment and sustainable economic both advance and emerging market economies
growth, and reduce poverty around the world
The IMF’s holdings of these countries, together
1.The IMF’s fundamental mission is to ensure with its own SDR holdings, make up its usable
the stability of the international monetary resources.
system. It does so in three ways:
MARKET INTEGRATION
2.keeping track of the global economy and the
economies of member countries; Used to identify a phenomenon in which
markets of goods and services are somehow
3.lending to countries with balance of payments related to one another being to experience
difficulties; and similar patterns of increase or decrease in terms
of prices of those products.
4.giving practical help to members.
•Refer to a situation in which the prices of
Surveillance
related goods and services sold in a defined
The IMF oversees the international monetary geographical location also begin to move in
system and monitors the economic and some sort of similar pattern to one another.
financial policies of its 189 member countries.
•Intentional with a government implementing
As part of this process, which takes place both
certain strategies as a way to control direction
at the global level and in individual countries,
of the economy
the IMF highlights possible risks to stability and
advises on needed policy adjustments IT occurs within two or more markets exerting
effects that also prompt similar changes or
Lending
shifts in other market that focus on related
The IMF provides loans to member countries goods.
experiencing actual or potential balance of
•In stock market, it occur with similar trends in
payments problems to help them rebuild their
trading prices for assets related to a given
international reserves, stabilize their currencies,
industry may be found in two or more markets
continue paying for imports, and restore
around the world.
conditions for strong economic growth, while
correcting underlying problem •It occurs when prices among different
locations or related goods follow similar
Capacity Development
patterns over a long period of time. It is a
The IMF works with governments around the situation in which separate markets for the
world to modernize their economic policies and same product become one single market.
institutions, and train their people. This helps
•A state affair or a process involving attempts to
countries strengthen their economy, improve
combine separate national economies into a
growth and create job
larger economic region
•It is a means of stimulating trade and the aftermath of WWII to foster economic
improving divisions of the labor among cooperation among them (Belgium, Germany,
countries has been recommended by many France, Italy, Luxembourg and the Netherlands)
economists.

•GATT is an example of integration of world

markets. Stating that “ All contracting parties
must accord any advantage, favour, privilege of
immunity granted to any product from any
other country immediately and unconditionally
to all other members.” Article 1 of GATT.

•European Union (EU) is another example

This can be achieved through:

1. Reducing non-tariff and tariff barriers to trade

(the main tool for integrating market) – The European Integration flag (EU)
negative integration. – Government’s only role
The European flag symbolises both the
if to withdraw from interference in the
European Union and, more broadly, the identity
movement of goods and factors of production
and unity of Europe.
across national boarders. (minimal government
regulation) •It features a circle of 12 gold stars on a blue
background. They stand for the ideals of unity,
Forms of Integrations:
solidarity and harmony among the peoples of
1.Preferential Agreement – it involves lower Europe.
trade barriers between those countries which
•The number of stars has nothing to do with the
have signed the agreement. Preference can be
number of member countries, though the circle
given in the form of tariff reduction for
is a symbol of unit
unlimited volumes of imports from specific
countries or for specified import quantities. LEGAL BASIS OF EUROPEAN UNION
2.Free Trade Agreement – it reduces barriers to Based on the rule of law. This means that every
trade among members countries to zero, but action taken by the EU is founded on treaties
each member country still has autonomy in that have been approved voluntarily and
deciding on the external rate of tariff for its democratically by all EU member countries.
trade with non-member countries. (EX.
European Free Trade Area) A policy area not in treaty, the EU Commission
cannot propose a law in that area
3. Customs Union – represents a higher stage of
economic integration than Free Trade Area as Treaty is a binding agreement between EU
the member countries adopt common external member countries.
tariff. Countries agrees to abolish tariff and non- It sets out EU objectives, rules for EU
tariff barriers to trade in good flowing between institutions, how decisions are made and the
them. relationship between the EU and its member
4. Common Market – it goes beyond Custom countries.
union in allowing for free movement of labor Treaties can be amended to make the EU more
and capital within the Union. Integration of efficient and transparent, to prepare for new
both product and factors markets of member member countries and to introduce new areas
countries. of cooperation – example, the single currency.
5. Economic Union – highest form of economic Treatyof Rome (1957) ...
integration. In addition to the conditions of a
Common Market, member countries also agree 2.The SingleEuropeanAct (1986) ...
to integrate monetary, fiscal and other policies 3.TheTreatyof Maastricht (1992) ...
The European Integration 4.TheTreatyof Amsterdam (1997) ...
European Union is a unique economic and 5.TheTreatyof Maastricht Nice (2001) ...
political union between 28 European countries
that together cover much of the 6.TheTreatyof Lisbon (2007)
continent.Initially six countries formed the
7.The Merger Treaty – Brussel Treaty (1965)
European Economic Community (EEC) in 1958 in
8.Treaty Establishing the European Coal and 5.The rule of law
Steel Community (1951)
6.Respect for human right
EU : An Economic Union to Political Union
ASEAN INTEGRATION
It started purely on economical union that
Established on August 8, 1967 in Bangkok
evolved into an organization spanning policy
Thailand
areas, from climate, environment and health to
external relations and security, justice and Founding members
migration.
1.Indonesia
It is governed by principle of representative
democracy, with citizens directly represented at 2.Malaysia
Union level in the European Parliament and 3.Philippines
Member States represented in the European
Council and the Council of the EU. 4.Singapore

EU: A Union of Single Currency 5.Thailand

The EU has delivered more than half a century Additional members

of peace, stability and prosperity, helped raise Brunei joined on January 7, 1984; Vietnam on
living standard and launched a single European July 28, 1985; Lao PDR and Myanmar on July 23,
currency. 1997 and Cambodia on April 30, 1999.
Single or internal market is the EU’s main ASEAN: ASEAN ECNOMIC COMMUNITY (AEC)
economic engine, enabling most goods, 2025
services, money and people to move freely.
Established in 2015, Kuala Lumpur, Malaysia
Another key objective is to develop this huge adopting AEC Blueprint (ASEAN 2025) provides
resources also in other areas like energy, broad directions through strategic measures for
knowledge and capital market to ensure that the AEC from 2016 – 2025:
Europeans can draw maximum benefit from it
1.ASEAN Community Vision 2025
EU: The Benefits of Euro
2.ASEAN Political Security Community 2025
It guarantees stable price. The European Central
Bank sets the interest rate; manages a portion 3.ASEAN Socio-Cultural Community
of euro area’s foreign exchange reserve and can
IT aimed towards achieving the vision of having
intervene in foreign exchange markets to
an AEC by 2025 that is
influence the exchange rate of euro
1.highly integrated and cohesive;
Benefits of single currency:
2.competitive, innovative and dynamic;
1.People no longer need to change money
3.with enhanced connectivity and sectoral
when traveling or doing business within euro
cooperation;
areas, saving time and transaction cost;
4.More resilient, inclusive, and people-oriented,
2.It cost much less to make cross boarder
people-centered community, integrated with
payments.
global economy
3.Consumer and businesses can compare prices
REGIONAL ECONOMIC INTEGRATION
more easily, which encourage business charging
higher prices to bring them do 1.Offering opportunities in the form of huge
market of US$2.6 trillion;
EU: A Union of Human Rights and Equality
2.Over 62 million people;
One of the EU’s main goal is to promote human
rights both internally and around the world. 3. 3rd largest economy in Asia;4.7th largest
economy in the world.
Core values of EU:
FIVE INTERRELATED AND MUTUALLY
1.Human dignity
REINFORCING CHARACTERISTICS:
2.Freedom
1. Highly Integrated and Cohesive Economy
3.Democracy
2.Competitive, Innovative and Dynamic ASEAN
4.Equality
3.Enhanced Connectivity and Sectoral 4.Free flow of capital
Cooperation
5.Free flow of skilled labor
4.Resilient, Inclusive, People-Oriented, and
THE GLOBAL ECONOMY AND OUTSOURCING
People-Connected ASEAN
Finding a partner with which a firm can
5.Global ASEAN
establish a bilateral relationship and having the
ASEAN Free Trade Area (AFTA) partner undertake relationship-specific
investments so that it becomes able to produce
Established the following in lowering of inter-
goods or services that fit the firm’s particular
regional tariffs:
needs.
1.Common Effective Preferential Tariff (CEPT) –
Example Call Center Industry; production of
0-5% tariff range for 99% of the products listed
some products by a country outsources:
(Brunei Darussalam, Indonesia, Malaysia,
materials, design; advance technology;
Philippines, Singapore and Thailand)
advertising; etc. from other country or parties
2. 80% of products listed (Cambodia, Laos,
Bilateral agreement are governed by a contract.
Myanmar and Vietnam)
GLOBAL CORPORATION
3.Average tariff for ASEAN-6 is now 1.51% (from
12.76 Is a business that operates in two or more
countries. Or Multinational Company.
ASEAN ECONOMIC COMMUNITY PRINCIPLE
Operating in multiple countries also posed
1.Originally built as political alliance (to limit the
logical and cultural challenges.
spread of communism is SEA), to diplomatic
organization (managing regional issues) and Operating in multiple countries allows you to
expand trade with the inclusion of Vietnam, achieve success in different types of economies
Cambodia, and Laos and their opening to a
GLOBAL CORPORATION AND GLOBALIZATION
market economy.
Globalization can also offer the benefits of
Now embarked the SEA association to the next
economies of scope and economies of scale
step of economic development, which will also
ultimately bring the SEA people clos Economies of Scope – you can take advantage
of different skills sets and market advantages.
ASEAN ECONOMIC COMMUNITY: FOUR
(Call Center operations in Philippines and India
PILLARS
are efficient)
1.Single Market and Production Base – the
Economies of Scale – when you use more
region as a whole must become a single market
equipment in production or buy supplies and
and production base to produce and
resale products in larger quantities, you can get
commercialize goods and services anywhere in
better costs per unit increasing profitability
ASEAN.
THE GLOBAL INTERSTATE SYSTEM
2.Competitive Economic Region – the region
must emphasize on the competitive ness of its INTERSTATE SYSTEM
production and capacity for export, as well as
the free competition inside of its frontiers. –States effectively act and interact with one
another on the global or world system
3.Equitable Economic Development – to receive
benefits of the AEC, the people and business of State – a system of centralized rule that
ASEAN must be engaged into the integration succeeded in subordinating all other institutions
process of AEC. and groups, temporal and spiritual (Heywood
2011). Emerged in 15th and 16th century in
4.ASEAN’s integration into a globalized Europe
economy – ASEAN must not be isolated but an
integral part of the global economy. Within its borders, it is expected to maintain its
unchallengeable power of its posses
5 CORE PRINCIPLES ASEAN SINGLE MARKET sovereignty.
AND PRODUCTION BASE:
STATE
1.Free flow of goods
State begun to interact with other state and
2.Free flow of services institution beyond its boundaries
3.Free flow of investment
.•International Relations (International Studies Globalization represents the process of
or International Politics) – interaction and deterritorialization : when social, political and
behaviour that occur across boundaries of economic activities are increasingly stretched
states. across the globe and making geography and
distance posing relative significance.
•Expected results to intensification of
relationship among nation-states which may Is a historical process involving a fundamental
either increase, decrease or transform states shift or transformation in the special scale of
than its usual position. human social organization that links distant
communities and expands the reach of power
The relation of states have been the center of
across regions and continents.
discipline, its nature and focus has been
significantly changing over time particularly SHIFTING FROM INTERNATIONAL POLITICS TO
under the realm of globalization GLOBAL POLITICS

.•Globalization – as a widening, intensifying, In international politics, state sovereignty

speeding up and growing impact of worldwide became the fundamental organizing principles.
interconnected. The growing interdependence between states;
its very idea presumes that the state remain
•Not all process of globalization occurs on the
discrete national units with clearly demarcated
level of state as this extends to the politics and
borders.
the political patterns of international relations
and organization which are equally important to Global politics is a process in which the very
what states and other political actors do. distinction between the domestic and the
external breaks down. The growing number of
QUALIFYING ELEMENTS OF STATEHOOD
complex political issues has eventually acquired
1.Defined territory a global character which in effect, extend
actually or potentially to all parts of the world
2.Permanent population
Events and the following significant changes t a
3.Effective government, and shift of paradigm
4.Capacity to enter into relations with other 1.New actors on the world stage Because of
state globalization, it impossible to regard state as
STATE AND SOVEREIGNTY the only significant actors in world stage. New
key players have come to exert influence and
Sovereignty – supreme power and authority identified as transnational corporation (TNCs),
1.Internal Sovereignty – state’s authority within non-government organization (NGOs) and a
range of non-state institution
2.External Sovereignty – relationship of states
to other states and international actors as its 2. Increased interdependence and
establishes state’s capacity to act as an interconnected
independent and autonomous entity in world As globalization results to a substantial growth
affairs. in cross-border or transnational, flows and
UN guarantee equal protection in international transaction (movement of people, goods,
relations that is according to the principle of money, information, etc.) the phenomenon also
sovereign equality increased the relation among states with
growing interdependence and
STATE AND GLOBALIZATION interconnectedness.
Globalization as a process is more than simply Problem and issues that are global in nature are
growing connections or interconnectedness impossible to resolve by any states alone,
between sates. except for a powerful state
Instead of looking at the interdependence or 3. The trend towards global governance
internationalization between nation-states, the
concept of globalization presents a dramatic Since 1945 a new framework of global
shift leading to the organization of human governance has been recognized
affairs – from the world of discreet but The establishments of international
interdependent nation-state to the world as a organizations (ex. IMF, WB, UN, WTO, EU, etc).
shared social space. The increase of member states reflects a growth
of states who profess commitments to human
rights and rule of law
 Week 3 – Global Proliferation of WWD – spread of
biological weapons to countries divided by
Introduction of International Relations
political differences

WMD – spread into rogue state and global

The Study of International Relations
terrorist networks
International relations – pertain to study of
Collapse of states – spread of socio political
state and non-state actors and their relationship
disorder in selected regions
to each other in the international system
The global spread of disease – rapid spread of
International system – a patterned set of
pathogens such as COVID
interactions among the major political actors on
the international stage Growing North-South wealth discrepancies –
disparities between winners and losers in
IR and Daily Life – affects your life and other
globalization
citizens
Threats to the LIEO – established by the West
-Prospects for getting jobs
after WWII, responsible for western wealth by
⮚ Global economy increasing trade demand from poor countries
⮚ International economic competition Resistance by the US to work with
-World is shrinking year by year international and multilateral organizations –
global threats cannot be managed unilaterally
-War is among the most pervasive international
influences in daily life, even in peacetime. OPPORTUNITIES FOR COOPERATION

Information Revolution – Growing human

knowledge that rapidly spreading technologies.
POSSIBILITIES FOR CONFLICT
Increasing global Productivity – efficiency of
Global Environmental Degradation: these economic output, through the introduction,
global threats include spread and improvement of computer based
technologies and mobility of global capital
1. Global warming, thinning of the protective
ozone layer of the atmosphere accompanied by Rapid Rise of New Emerging Global Economies
rising rates of skin cancer – potential reduction of global poverty
2. Destruction of the worlds rain forest (global Development of Renewable Energy Sources –
lungs) and denuding of other forested areas new research and technology investment in
energy sources
3. Rapid urbanization owing to peasant flight to
megacities in countries like China and India with Global Spread of Democracy – unprecedented
accompanying pollution and urban poverty adoption of democratic ideas and institutions.
4. Spread of deserts into formerly fertile Continued Growth of Authoritative Global and
regions of Asia, Africa, and Latin America Regional Institutions – coordinate national
policies with regional and global norms and
5. The elimination of species of plants and
practices (WTO, WHO, EU, OPEC)
animals and reduction in biodiversity
Proliferation and Networking of NGOs –
6. Accumulation of radioactive debris and
Growth of global civil society through people
nuclear waste
organizing across borders to address global,
Overpopulation – developing world may humanitarian crisis, and aid, technical
contribute to spread disease, land hunger, information, cultural, political, and social
political unrest, and large scale migration to rich cooperation.
states that ages and shrinking population
Growth of international regimes – formal and
Resource depletion – energy demands outstrip informal coordination and collaboration in
known reserve of petroleum and natural gas as issues to maximize global security and
population grows prosperity
The proliferation of Religious and Ethnic Decline of Interstate Warfare
Extremism – questioning of the authoritative
Rapid Proliferation of International Law
governmental and social structure
protecting the individual: codification of
humans rights and spreading norms.
 CORE PRINCIPLE - Stability comes at a cost of constant
oppression and resent by the lower ranking
Collective goods are easier to provide in small
members of the hierarchy
groups
RECIPROCITY
Small Group – defection is harder to conceal
and has a greater impact on the overall Rewarding behavior that contributes to group
collective good, and easier to punish and punish behavior that pursues self interest
at the cost of the group
Collective goods problem occurs in all group
and societies but within state, government -Easy to understand and can be enforced
provide public or collective goods. without authority

-Particularly acute in international affairs –No -Positive and negative reciprocity

central authority as a world government to
-Disadvantage – lead to downward spiral as
enforce on individual nations the necessary
each side punishes what believes to be negative
measure to provide common good.
act to other.
Offer possible solutions for this core problem of
getting individual to cooperate for common ⮚ Generally people overestimate their
good without authority to make them. own good intentions and underestimate
those of opponents or rivals
PRINCIPLE – ADVANTAGES – DRAWBACKS
IDENTITY
Dominance – Order, Stability, Predictability –
Oppression, Resentment Identity principle does not rely on self interest

Reciprocity – Incentives for mutual cooperation Members of an identity community care about
– Downward spirals: Complex Accounting the interest of others in the community enough
to sacrifice their own interest to benefit others.
Identify – Sacrifice for Group, Redefine Interest
– Demonizing an out group In IR , identity communities play important roles
in overcoming difficult collective goods problem

-Nonstate actors also rely on identity politics

IR AS A FIELD OF STUDY

Practical discipline

Theoretical debates are fundamental

International politics but field is

interdisciplinary, economics history sociology
DOMINANCE anthropology geography.
Solves collective goods with problem by -Usually taught within discipline of political
establishing power hierarchy in which those at science
the top control those below
-Domestic politics of foreign countries, although
-Status hierarchy overlapping with IR, generally make up the
⮚ Hegemon separate field of comparative politics.
⮚ Acts of submission and dominance Issue areas : political-economic, environmental,
social
Advantage
Conflict and cooperation
-Force member to contribute to common good.
Subfields
-Minimize open conflict within the group

Disadvantage ⮚ International security

⮚ International political economy.
-Conflicts over position can harm the group
stability and well being ACTORS AND INFULENCES

Principal actors are states

IR scholars traditionally study the decisions and
acts of those governments in relation to other
governments

Individual actors: Leaders and citizens

bureaucratic agencies in foreign ministries
multinational corporation and terrorist groups

STATE ACTORS

Most important actors in IR are states

State – territorial entity controlled by

government and inhabited by population

Theoretical assumption :

-State government exercises sovereignty over

Week 4
territory.
League of Nations – WWII led to the creation of
-Recognized as sovereign by other states
the UN
-Population form a civil society
Dumbarton Oaks – 1944, Reps of China, the
-Seat of government with a leader Soviet Union, the United Kingdom and the
United States at Dumbarton Oaks, United States
International system:
in August – October
-Relationship among the world states,
San Francisco – in 1945 reps of 50 countries
structured according to rules and interaction
met in San Francisco Organization to draw up
-Modern international system has existed for the United Nations Charter.
less than 500 years
United Nations officially came into existence on
-Origin in Treaty of Westphalia 1648 24 October 1945, when the Charter had been
ratified by China, France, the Soviet, Union, the
-Nation states
United Kingdom, the United States and majority
-Major source of conflict : mismatch between of other signatories.
perceived nation and borders
United Nation Facts
-Population grow dramatically.
192 member states
-Great variation in terms of size of state total
UN headquarters: New York
annual economy activity (GDP)
The US is the largest single contributor to the
-Great powers – states that powerful called
UN budget.
superpowers
June 2004 – Us owed UN 1 billion dollars almost
half the total of 2.5 billion owed by other
members.

U.N budget is $2.5 billion a year.

In theory, any member state that owes more

than its two previous years’ assessments cannot
vote in the General Assembly.

UN Secretariat worldwide: employs 15,000

people from 170 different countries.

Six official languages UN: Arabic, Chinese,

English, French, Russian, and Spanish.

Secretary General: Ban Ki-moon of South Korea.

Aims /Objectives of the UN

To keep peace throughout the world.

To develop friendly relations between nations.

To work together to help people live better to exercise the trusteeship functions of the
lives, to eliminate poverty, disease and illiteracy United Nations in "strategic areas";
in the world, to stop environmental destruction
to recommend to the General Assembly the
and to encourage respect for each other's rights
appointment of the Secretary-General and,
and freedoms.
together with the Assembly, to elect the Judges
To be a centre for helping nations achieve these of the International Court of Justice.
aims.
General Assembly
Principles of the UN
It occupies the central position as the chief
All Member States have sovereign equality. deliberative, policy-making and representative
organ of the United Nations.
All Member States must obey the Charter.
A forum for multilateral discussion on
Countries must try to settle their differences by
international issues between 192 Members of
peaceful means.
the United Nations
Countries must avoid using force or threatening
It plays a significant role in the process of
to use force.
standard-setting and the codification of
The UN cannot interfere in the domestic affairs international law.
of any country.
The Assembly meets in regular session
Countries should try to assist the United intensively from September to December each
Nations. year, and thereafter as required.

The Principal organs of the UN Educational and Social Council

 General Assembly ECOSOC coordinates economic, social, and

 Security Council related work of the 14 UN specialized agencies,
 Economic and Social Council functional commissions and five regional
 International Court of Justice commissions.
 Secretariat ECOSOC consults with academics, business
 Trusteeship Council sector representatives and more than 2,100
Security Council registered non-governmental organizations.

 5 permanent members: China, France, It is responsible for:

Russia, UK and the United States promoting higher standards of living, full
 10 rotating members employment, and economic and social progress;
 Responsible for the maintenance of
international peace and security. identifying solutions to international economic,
social and health problems;
The Security Council has the responsibility to
facilitating international cultural and
to investigate any dispute or situation which educational cooperation; and
might lead to international friction;
encouraging universal respect for human rights
to recommend methods of adjusting such and fundamental freedoms.
disputes or the terms of settlement;
International Court of Justice
to formulate plans for the establishment of a
system to regulate armaments; The International Court of Justice (ICJ) is the
principal judicial organ of the United Nations
to determine the existence of a threat to the (UN).
peace or act of aggression and to recommend
what action should be taken; It was established in June 1945 by the Charter
of the United Nations and began work in April
to call on Members to apply economic sanctions 1946.
and other measures not involving the use of
force to prevent or stop aggression; The seat of the Court is at the Peace Palace in
The Hague (Netherlands).
to take military action against an aggressor;
The Court’s role is to settle, in accordance with
to recommend the admission of new Members; international law, legal disputes submitted to it
by States and to give advisory opinions on legal
questions referred to it by authorized United
Nations organs and specialized agencies.

The Court is composed of 15 judges, who are

elected for terms of office of nine years by the
United Nations General Assembly and the
Security Council.

Its official languages are English and French.

Trusteeship Council

Responsible for supervising the administration

of Trust Territories placed under the
Trusteeship System.

Major goals: to promote the advancement of

the inhabitants of Trust Territories and their
progressive development towards self-
government or independence.

The aims of the Trusteeship System have been

fulfilled to such an extent that all Trust
Territories have attained self-government or
independence, either as separate States or by
joining neighbouring independent countries.

The Council suspended operation on 1

November 1994, with the independence of
Palau, the last remaining United Nations trust
territory, on 1 October 1994.