Cworld Midterms
Cworld Midterms
Cworld Midterms
E
• This chapter deals with the
transformations of the interstate
system. it discusses the elements of
the contemporary interstate system
E
as well as different views on its
SA
character and the nature of its
actors. It also discusses the changes
in the construct of sovereignty and
territory.
• It explains the role of states in
internatinal affairs and the
transformations that have occurred.
It elaborates the growing role of
E
SA
non-state actors. It also examines
the impact globalization on the
interstate system.
FOR A LONG TIME, STATES HAVE BEEN
THE DOMINANT ACTORS IN THE
INTERNATIONAL AFFAIRS. THE
E
INTERSTATE SYSTEM HAS BEEN
SA
ORGANIZED AROUND THE PRINCIPLES
OF SOVEREIGNTY, TERRITORIALITY, AND
NON-INTERFERENCE.
The Interstate System
The idea of a 'system' requires the
existence of units, among which
interactions take place (Buzan 1993).
E
SA
In the interstate system, the units are
the states, and their interactions
include war, diplomacy, and
cooperation.
The Interstate System
The contemporary interstate system is
founded on the principles of
sovereignty, territoriality and non -
E
interdependence. the use of the term
SA
“interstate” is preferred over
“international” to emphasize that
what is being dealt with are states
instead of nations.
The Interstate System
E
Peace of Westphalia which ended
SA
the Thirty Years War in Europe.
The continent before 1648
consisted of political units smaller
than the states.
The Interstate System
• These political units include
territories ruled by powerful feudal
lords who did not necessarily owe
allegiance to the monarchs.
E
SA
• At the macro level, authority resided
in the Holy Roman empire. This
made the state being not the focus
of power. At the time, in fact,
The Interstate System
E
represented. SA
The Interstate System
The current interstate system is a
result of convergence of economic
and political factors, wealth and
E
coercion. These factors enabled
SA
monarchs to weild powers
enough to challenge the
dominance of the Holy Roman
Empire as well as the feudal lords.
The Interstate System
E
over the means to wage wars.
SA
STATE
• A COMMUNITY OF PERSONS, MORE OR LESS
UNITED, OCCUPYING A DEFINITE PORTION
OF TERRITORY, HAVING A GOVERNMENT OF
E
ITS OWN IN WHICH A GREAT NUMBER OF
SA
INHABITANTS RENDER OBEDIENCE AND
INDEPENDENT OF EXTERNAL CONTROL.
ELEMENTS OF STATE
E
SA
2.PEOPLE- MASS OF INHABITANTS WHO
LIVE WITHIN THE TERRITORY OF STATE
3. GOVERNMENT- AGENCIES/OFFICES WHICH
CARRIES OUT THE WILL OF STATE STATE,
THAT IS TO MAINTAIN ORDER AND
SECURITY IN THE STATE.
E
SA
4. SOVEREIGNTY- SUPREME POWER OF THE
STATE TO COMMAND OBEDIENCE FROM
ITS PEOPLE AND TO BE FREE FROM
OUTSIDE INTERFERENCE (INDEPENDENCE).
Four Types of Sovereignty
1. Internal Sovereignty
2. External Sovereignty
E
3. Political Sovereignty
4.
SA
Legal Sovereignty
AS A RULE, EVERY STATE MUST RESPECT
EACH OTHER’S SOVEREIGNTY AND NOT
INTERVENE IN THE EACH DOMESTIC
AFFAIRS.
- THE TREATY OF WESTPHALIA (1648)
E
RECOGNIZES THE PRINCIPLE OF
SA
SOVEREIGN STATEHOOD.
CONCERT OF EUROPE
From 1815 - 1914 the concert of
Europe established a set of
principles, rules and practices that
E
helped to maintain balance
SA
between the major powers after
the Napoleonic wars, and to spare
Europe from another broad conflict.
CONCERT OF EUROPE
The concert of Europe, also known as the
Congress System or the Vienna System
after the congress of Vienna was a
E
system of dispute resolution adopted by
SA
the major powers of Europe to avoid
future conflicts escalating into war, and to
solidify and maintain their powers in their
respective controlled regions.
CONCERT OF EUROPE
E
Napoleon who would incite
SA
popular uprisings and cause
Europe instability.
THEORETICAL PERSPECTIVES
E
SA
interstate system and the nature of
interstate relations. These theories
include REALISM, LIBERALISM,
CONSTRUCTIVISM and MARXISM
THEORETICAL PERSPECTIVES
• 1.REALISM- ASSUME THAT JUST LIKE HUMAN
INDIVIDUALS, STATES ARE RATIONAL ACTORS
AND THEIR PRIMARY CONCERN IS THE
E
PROMOTION OF THEIR SELF-INTERESTS.
SA
REALISM
IN AN ANARCHIC INTERNATIONAL
SYSTEM, WHEREIN THERE’S AN ABSENCE
OF CENTRAL AUTHORITY, STATES MUST
E
FEND FOR THEMSELVES AND MUST
SA
AMASS POWER TO PROTECT
THEMSELVES FROM THE DEPRADATIONS
OF OTHER STATES
REALISM
E
SA
implications. Because states think in
terms of self-help, they must fend for
themselves. During the Cold War
period, the United States and
REALISM
E
SA
warheads. Although biopolarity helped
maintain stability vertical proliferation
was seen mutually by both parties as a
threat to their security.
REALISM
E
SA
acquiring more nuclear weapons.
THE STATE’S POWER MAY BE BASED ON
THE FOLLOWING ELEMENTS:
1. MILITARY STRENGTH
2. STRONG ECONOMY
E
SA
3. INTERNAL STABILITY
4. FOREIGN ALLIANCES
2. LIBERALISM
- LIBERALS ASSUME STATES BEHAVE
WITH RATIONALITY AND MUST BEHAVE
PROPERLY IN RELATION WITH EACH
E
OTHER
SA
- THEY ARE OPTIMISTIC FOR LONG-
TERM PEACE
LIBERALISM
- LIBERALS EMPHASIZE THE PACIFYING
ROLES OF INTERNATIONAL
ORGANIZATIONS, ECONOMIC
INTERDEPENDENCE, AND DEMOCRACY
E
SA
LIBERALISM
- LIBERALS MAINTAIN THAT ECONOMIC
INTERDEPENDENCE MINIMIZES
CONFLICTS. AS RATIONAL ACTORS, IT IS
NOT IN STATE’S BEST INTERESTS TO
E
SA
SACRIFICE THE GAINS OF ECONOMIC TIES
BY ENGAGING IN COSTLY CONFLICTS
LIBERALISM
- CONFLICTS AND WARS CAN ONLY
RESULT IN MUTUALLY ASSURED
ECONOMIC DESTRUCTION
- LIBERALS BELIEVE THAT DEMOCRATIC
E
STATES DO NOT FIGHT OTHER
SA
DEMOCRACIES. THEY RESPECT EACH
OTHER
3. CONSTRUCTIVISM
- IS CONCERNED WITH THE
RELATIONSHIP BETWEEN AGENTS AND
STRUCTURES
CONSTRUCTIVISTS IDENTIFY THE
PRINCIPAL ACTORS, THEIR INTERESTS
E
AND INDENTITIES, AND THE NATURE AND
SA
STRUCTURE OF THE INTERNATIONAL
SYSTEM
CONSTRUCTIVISM
Substantive theory - provides specific claims
and speculations about issues and patterns of
world affairs.
- how we can explain the absence of wars
E
between the major powers.
SA
CONSTRUCTIVISM is best compared to Rational
Choice - a social theory that explains how agents
pursue their interests under specific conditions or
constraints.
CONSTRUCTIVISM
- breaks with the assumptions of two rational
choice theories, realism and liberalism.
E
- constructivits do not share the view that
SA
states are rational actors that have fixed set of
interests, identities and preferences.
E
SA
- Self - help and power politics are shaped
through shared understanding and interaction.
if states change the way they interact , their
identity as sel-interested agents and their
anarchic environment are likely to change too.
CONSTRUCTIVISM
- Emphasizes the role of ideas.
E
but also by ideational forces. While
SA
capabalities like military power are important. It
is ideas that determine whether states should
always pursue them at all costs
CONSTRUCTIVISM
- Constructivists highlight the importance of
norms.
E
Norms - are ideas that have an effect on the
SA
behavior of agents. Norms may be regulative,
prescriptive, or constitutive.
4. MARXISM
- ARGUE THAT THE WORLD IS DIVIDED
ALONG ECONOMIC LINES, BETWEEN
DEVELOPED AND UNDEVELOPING
STATES. RICH/DEVELOPED STATES
EXPLOIT POOR/DEVELOPING STATES
E
RESULTING TO MASS POVERTY AND
SA
GIVING RISE TO ANTI-IMPERALIST
MOVEMENTS.
MARXISM
-IMPERIALISM MAKES THE CONFLICT
BETWEEN RICH AND POOR STATES
UNAVOIDABLE AND CONTINUOUS.
E
FREE THEMSELVES FROM IMPERIALISM AND
SA
PURSUE DEVELOPMENT ON THEIR OWN
PATH.
THE ROLE OF NON-STATE ACTORS
1.INTERNATIONALORGANIZATIONS
- PROMOTE PEACE, SECURITY AND
COOPERATION (UN, EU, ASEAN, NATO)
E
2. NON-GOVERNMENT ORGANIZATIONS
SA
- ENGAGE IN VARIOUS ADVOCACIES LIKE
ENVIRONMENT PROTECTION ,HUMAN RIGHTS
(AMNESTY INT’L, GREENPEACE)
3. MULTINATIONAL CORPORATIONS
- MONOPLY FIRMS THAT OPERATE IN
MANY COUNTRIES
E
- PROMOTE INTERDEPENDENCE BY
SA
EXPANDING TRADE AND FOREIGN
INVESTMENT
MULTINATIONAL CORPORATIONS
(MNC’S)
- OWING TO THEIR ENORMOUS CAPITAL,
THEY HAVE THE TENDENCY TO INTERFERE
AND INFLUENCE THE INTERNAL AFFAIRS OF
E
HOST COUNTRIES
SA
GLOBALIZATION AND THE INTERSTATE
SYSTEM
• Outside-in view - regards globalization as an
exogenous process that is making a profound
impact on state affairs.
E
SA
• Inside-out view - globalization recognizes that
states are the ones influencing the level of
global interconnectedness today.
REFERENCES
• Biersteker, T.J. (2013). “State, Sovereignty, and Territory. “In handbook
of International Relations, edited by Walter Carisnaes, Thomas Risse and
Beth A. Simmons. 245-272. Los Angeles: Sage.
• Buzon, B. (1993). “From International System to International Society;
Structural Realism and Regime Theory Meet the English School.
E
“International Oganization 47 (3).327-352
SA
• Clark, I. (2008) “Globalization in the Post Cold war orde. “In the
Globalization of World Politics: An Introduction to International
Relations, edited by John Baylis. Steve Smith and Patricia Owens. 560-
575. Oxford University Press.
• Allan G. Quinanola and Richard B. Fernandez. Globalization in the
Contemporary World: Post Cold War Global Economy Politics and
Society. The Contemporary World.
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
SA
E
- IT HAS BEEN SUGGESTED THAT BECAUSE OF
GLOBALIZATION, THE WORLD IS REDUCED TO A
WHERE TIME AND SPACE
E
SEEM TO BECOME INCREASINGLY IRRELEVANT.
SA
- THE DEVELOPMENTS IN THE CONTEMPORARY
WORLD CREATE AND IMAGERY THAT THE WORLD IS
Global Village
GLOBAL VILLAGE - the whole world considered as
being closely connected by modern
telecommunications and as being interdependent
E
economically, socially and politically.
SA
- the world considered as a single community in which
telecommunications link the inhabitants together.
SA
E
The World is Shrinking
- THE DEVELOPMENTS IN THE CONTEMPORARY
WORLD CREATE AND IMAGERY THAT THE WORLD IS
“SHRINKING”.
E
SA
- Technology advancements bring people together
like never before, making the world smaller and
more accessible.
Globalization
- DISTANCE WAS ONCE A HINDRANCE, BUT WITH
INNOVATION IN TECHNOLOGY, COMMUNICATION
BECOMES A LOT EASIER, FASTER AND CHEAPER.
E
SA
ADVANCE TO COMMUNICATION - IN TERMS OF
IMPACT, GLOBALIZATION PRESENTS BOTH
OPPORTUNITIES AND CHALLENGES.
SA
E
-HOLDS THAT GLOBALIZATION MAY NOT BE ENTIRELY
NEW, BUT WHAT IS NEW IS HOW IT HAS
DENATIONALIZED HUMAN AFFAIRS. ( ex: Burma and
E
Dominican Republic)
SA
-THE NATION-STATE WILL BE REPLACED BY INSTITUTIONS
OF GLOBAL GOVERNANCE THUS WEAKENING THE
POWER OF NATIONAL GOVERNMENTS .
- THE ARGUE THAT THE DRIVING
FORCES OF GLOBALIZATION DEMOCRACY, CAPITALISM
(FREE TRADE/FREE MARKET ECONOMY) AND
E
INTERNATIONAL INSTITUTIONS.
SA
* the view that open markets and free trade and
investment across global markets allow more and
more people to share in the prosperity of a growing
world economy.
- FREE TRADE AND ECONOMIC INTEGRATION
WILL MAKE THE WORLD BORDERLESS.
E
SA
- THE SPREAD OF DEMOCRACY WILL WEAKEN
THE POWER OF THE STATE STRENGTHENING
GLOBAL INSTITUTIONS LIKE THE UN, IMF, WTO,
ASEAN, WB, APEC AND EU.
SKEPTICAL VIEW
- SKEPTICS ARGUE THAT NATIONAL GOVERNMENTS ARE
ESSENTIAL TO THE REGULATION OF INTERNATIONAL
ECONOMIC ACTIVITY AND THE CONTINUED
E
LIBERALIZATION OF THE ECONOMY CAN ONLY BE MADE
SA
POSSIBLE BY THE POWER OF NATIONAL GOVERNMENTS.
E
EITHER INTEGRATION OR FRAGMENTATION.
SA
- GLOBALIZATION IS A LONG-TERM CONTINUOUS
PROCESS THAT IS CHARACTERIZED BY
UNCERTAINTIES, CRISIS, AND CONTRADICTIONS
WHICH MAKES IT IMPOSSIBLE TO PREDICT.
SA
E
* GLOBALIZATION CAN BE SAID TO HAVE EXISTED
VERY LONG TIME AGO. AMARTYA SEN (2002),
E
ARGUES THAT GLOBALIZATION IS AT LEAST A FEW
SA
THOUSAND YEARS OLD.
* IT IS IMPORTANT TO NOTE THAT THE
DEVELOPMENT AND CHANGES IN THE VARIOUS
DIMENSIONS OF GLOBALIZATION DO NOT OCCUR
SIMULTANEOUSLY AND UNIFORMLY.
PRE - WORLD WAR1 (BEFORE 1914)
CENTURIES BEFORE WORLD WAR I (1914-1918), MANY PARTS OF
THE WORLD HAD ALREADY BEEN IN CONTACT WITH EACH
OTHER
E
SA
FEATURES OF THIS PERIOD
1. EUROPEAN TRADE AND TERRITORIAL
EXPANSION (SPICE, SILK, AND SLAVE TRADE)
2. USE OF THE GOLD STANDARD AS THE
MEDIUM OF EXCHANGE (MERCANTILISM)
PRE - WORLD WAR1 (BEFORE 1914)
3. INDUSTRIAL REVOLUTION
(18TH-19TH CENTURIES)
E
PERIOD OF SCIENTIFIC AND TECHNOLOGICAL
SA
CHANGES THAT LED TO GLOBAL TRADE
EXPANSION WITH BRITAIN, FRANCE, AND
GERMANY AS THE LEADING NATIONS
(IMPERIALISM)
Imperialism
– a policy of extending the rule or authority
E
of a nation over foreign countries or
SA
acquiring colonies and dependencies.
PRE - WORLD WAR1 (BEFORE 1914)
4. TREATY OF WESTPHALIA (GERMANY)-
RECOGNIZED THE PRINCIPLES OF SOVEREIGNTY
(POWER OF STATES TO RULE THEMSELVES W/OUT
E
INTERFERENCE FROM OTHER STATES).
SA
* NATION-STATES BECAME THE DOMINANT ACTORS
IN INTERNATIONAL POLITICS
PRE - WORLD WAR1 (BEFORE 1914)
THE CONCERT OF EUROPE- THE WORLD’S FIRST
INTERNATIONAL ORGANIZATION. IT WAS ORGANIZED IN
ORDER FOR EUROPEAN STATES TO PREVENT AND RESOLVE
CONFLICT. THIS MARKED AN IMPORTANT STEP IN THE
E
DEVELOPMENT OF INTERNATIONAL NEGOTIATIONS AND
SA
DIPLOMACY.
E
TERMS OF A FIXED AMOUNT OF ANOTHER CURRENCY THAT
SA
WAS CONVERTIBLE TO GOLD. IT FACILITATED
INTERNATIONAL TRADE AND WORKED WELL UNTIL WORLD
WAR II
E
FOR COLLECTIVE SECURITY AND THE PREVENTION
SA
OF FUTURE WARS FINDS FULFILLMENT IN THE
FOUNDING OF THE LEAGUE OF NATIONS- THE
FORERUNNER OF THE UNITED NATIONS.
POST WORLD WAR II AND THE COLD WAR
(1945 - 1991)
*THE PERIOD AFTER WORLD WAR II SAW A
TREND TO INCREASING GLOBALIZATION
E
SA
*THE BRETTON WOODS CONFERENCE IN NEW
HAMPSHIRE, USA (1944) PAVED THE WAY FOR
GLOBAL INSTITUTIONS THAT WOULD GOVERN
GLOBAL FINANCE AND TRADE UP TO THE
PRESENT (GATT, IMF, WB, WTO)
POST WORLD WAR II AND THE
COLD WAR (1945 - 1991)
* THE UNITED NATIONS (UN) WAS ESTABLISHED IN 1945 TO
PICK UP WHAT THE LEAGUE OF NATIONS FAILED TO
ACHIEVE: LASTING PEACE BASED ON JUSTICE.
E
SA
* ASIDE FROM MAINTAINING PEACE AND SECURITY, THE UN
IS ALSO MANDATED TO ACHIEVE ECONOMIC AND SOCIAL
DEVELOPMENT.
E
SOCIALISM
SA
* THE COLD WAR IS A NON-CONFRONTATIONAL LOW-
INTENSITY WARFARE BETWEEN THE SUPERPOWERS
CHARACTERIZED BY INTENSE PROPAGANDA, ESPIONAGE,
ARMS RACE AND THE USE OF PROXIES AND ALLIES TO
FIGHT ONE’S WAR
POST WORLD WAR II AND THE COLD WAR
(1945 - 1991)
* THIS PERIOD SAW THE INCREASED ROLE OF INTERNATIONAL
FINANCIAL INSTITUTIONS PARTICULARLY IN POOR COUNTRIES.
E
LIKE ENVIRONMENTAL DEGRADATION AND CIVIL WARS
SA
* EXPANDING ROLES OF NON-GOVERNMENT ORGANIZATIONS IN
ADDRESSING GLOBAL PROBLEMS LIKE HUNGER, HUMAN RIGHTS
VIOLATIONS, ENVIRONMENTAL DEGRADATION AND GENDER EQUALITY
POST COLD WAR PERIOD
(1992-PRESENT)
* CHARACTERIZED BY CONTINUITY OF THE PAST IN MANY
DIMENSIONS OF GLOBALIZATION
E
* EVER INCREASING DIMENSION OF TRADE AND INVESTMENT THE
WORLD HAS NEVER SEEN UNDER A FREE MARKET SYSTEM
SA
* iNFORMATION TECHNOLOGY EXPLOSION THROUGH THE INTERNET
E
Advance Industrialized States
SA
And Developing States.
Gross
E
Domestic
SA
Product
What is Gross Domestic Product (GDP)
E
SA
how countries are
improving or
deteriorating based on
the development aspect.
10 COUNTRIES WITH HIGHEST GDP (NOMINAL)
E
UNITED STATES
SA
CHINA
JAPAN
© INTERNATIONAL MONETARY FUND WORLD ECONOMIC OUTLOOK (APRIL-2018)
10 COUNTRIES WITHWITH
10 COUNTRIES HIGHEST GDP GDP
HIGHEST (PPP)(PPP)
E
CHINA
SA
UNITED STATES
INDIA
© INTERNATIONAL MONETARY FUND WORLD ECONOMIC OUTLOOK (APRIL-2018)
Income Inequality
E
DISTRIBUTED AMONG THE
SA
POPULATION.
E
PO V E R T Y
SA
Poverty Is A State Or Condition In Which A Person Or Community Lacks The Financial Resources
And Essentials For A Minimum Standard Of Living.
ABSOLUTE POVERTY MODERATE POVERTY
• Refers To Income Below The Minimum • Basic Needs Are Barely Met But
Level Required For Physical Survival. Survival Is Not Actually Threatened.
E
• A Condition Characterized By Severe • People In Moderate Poverty Generally
Deprivation Of Basic Human Needs, Have Access To The Basic Necessities
SA
Including Food, Safe Drinking Water, Of Life, But They Do Not Have Much If
Sanitation Facilities, Health, Shelter, Any Disposable Income Beyond That.
Education And Information.
• In Moderate Poverty As Less Than $2
• In 2018, Extreme Poverty Widely Or $5 A Day
Refers To Making Below The
International Poverty Line Of
$1.90/Day
D R CONGO
MOZAMBIQUE
E
UGANDA
SA
TAJIKISTAN
YEMEN
HUMAN DEVELOPMENT INDEX
• The HDI was created to emphasize that people and
their capabilities should be the ultimate criteria for
assessing the development of a country, not economic
growth alone.
E
choices, asking how two countries with the same level
SA
of GNI per capita can end up with different human
development outcomes.
LIFE EXPECTANCY
E
INCOME SA EDUCATION
COMPETING PERSPECTIVES ON
E
GLOBAL DIVIDE
SA
MODERNIZATION THEORY
E
SA
• Poverty Is The Primordial Condition Of Humanity.
E
SA
• It Is A Counter argument To Modernization Theory, Which
Prescribes That Developing Countries Must Follow The Path
Of The Developed Nations.
STAGE 5: HIGH MASS CONSUMPTION
E
SA
STAGE 3: TAKE-OFF
TIME
“ENDO”
• It is a form of contractualization which involves
companies giving workers temporary employment
that last them less than six months and then
terminating their employment just short of being
E
regularized in order to skirt on the fees which
come with regularization. some examples of such
SA
benefits contractual workers don't get as compared
to regularized workers are the benefits of having
an employer and employee SSS, PHILHEALTH, and
the PAG-IBIG housing fund contribution, unpaid
leaves, and the 13th month pay, among others.
NEO-LIBERAL THEORY
• The Intellectual Basis For Neo-liberal Theory Comes From Neo-classical Economics,
Which Combines Arguments Supportive Of Free Market With Scientifically Inclined
School Of Economics.
E
• On The International Level, The IMF And The World Bank Champion Their Own
SA
Form Of Neo-classical Economics Through The Ideals Of Structural Adjustments.
• For Economists, The Culprits Are Paternalistic Politics That Favour Cronyism,
Corruption, And Bloated Bureaucracies.
WORLD SYSTEM THEORY
E
SA
CORE CENTER POWERS
SEMI-PERIPHERAL COUNTRIES
PERIPHERY
GLOBAL NORTH & GLOBAL SOUTH
E
SA
SA
E
GLOBAL ECONOMY
E
SA
• It involves integration of economies
around the world, particularly
through free trade and financial
flows.
GLOBAL ECONOMY
E
framework of the global economy
SA
can be said to have its roots in the
planning for post-war economic
order just before the end of World
War II.
GLOBAL ECONOMY
E
integration of markets. While these
SA
institutions indeed facilitated opening
of markets, the process has not
always been smooth.
GLOBAL ECONOMY
E
experienced a downturn in the 1970’s.
SA
It affected both the major economies
and developing nations. Later on the
global economy gained momentum
with the end of Cold war.
GLOBAL ECONOMY
E
SA
BRETTON WOODS CONFERENCE.
WHAT IS BRETTON WOODS CONFERENCE?
E
was the gathering of 730 delegates
SA
from all 44 allied nations at the Mount
Washington, Hotel situated in Bretton
Woods, New Hampshire, United States,
July 1-22, 1944.
WHAT IS BRETTON WOODS CONFERENCE?
E
SA
postwar world after the expected
defeat of Germany and Japan.
WHAT IS BRETTON WOODS CONFERENCE?
E
44 states or governments including
SA
the Soviet Union. It drew up a project
for the International Bank for
Reconstruction and Development
(IBRD) to make long – term capital
WHAT IS BRETTON WOODS CONFERENCE?
E
project for the International
SA
Monetary Fund (IMF) to finance
short term imbalances in
international payments in order
to estabilize exchange rates.
WHAT IS BRETTON WOODS CONFERENCE?
E
and discriminatory tariffs would
SA
probably be necessary for some
time after the war, it prescribed
that such measures should be
ended as soon as possible.
WHAT IS BRETTON WOODS CONFERENCE?
E
SA
1945 and the IMF in 1946, to
become operative, respectively, in
the two following years.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
states assembled in the United States
SA
for the Bretton Woods Conference.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
b. Trade System – that will help
SA
prevent another great depression,
promote world trade and support
postwar economic rehabilitation
institutions.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
SA
First, the International Monetary Fund (IMF)
was established to supervise the fixed
exchange rate system and help countries with
their balance of payment problems.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
(IBRD, or the World Bank).
SA
• Was created to assist in the recovery
efforts and promotion of investments.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
served initially as an interim
SA
agreement until a trade
organization would be put in
place, became a forum for trade
negotiations among states.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
SA
encircle and isolate the
adherents of communism from
international affairs.
PLANNING FOR THE POST –WAR GLOBAL
ECONOMY
E
SA
and supported the Bretton
Woods system.
The Primary Dilemma Facing States before
the Bretton Wood System was between
E
SA
-the desire stability of the
international monetary system
National Intervention in Monetary Issues
Undermined the Stability of the System
- Beggar-thy-neighbor policies
E
SA
or engaging in
E
SA
and international stability that the
Bretton Woods system sought to
address.
•First, a system in which governments
would have a considerable leeway to
E
pursue economic objective.
SA
•Second, a monetary order that would
be based on fixed exchange rate to
prevent currency manipulation.
How did the Bretton Woods System Work?
E
First, a system should provide liquidity to
SA
finance international transactions
LIQUIDITY – refers to the amount of assets
such as, money that can be available to
finance trade.
How did the Bretton Woods System Work?
E
balance of payments between balance of
SA
payment disequilibria.
E
SA
How did the Bretton Woods System Work?
E
state.
SA
• But if a state is suffering fundamental balance of
payment problems, the system would permit that
state to change its exchange rate. It refers to the
system as “EMBEDDED LIBERALISM”.(John Gerard
Ruggie).
US AND GLOBAL ECONOMY IN DECLINE
E
domestic policies pursued by the US
SA
administration had taken their toll on
the economy.
US AND GLOBAL ECONOMY IN DECLINE
E
SA
public education
• Urban development had weakened US
fiscal position.
US AND GLOBAL ECONOMY IN DECLINE
E
services in the global economy
SA
declined. the confidence of US dollar
had likewise fallen.
What is Inflation?
E
level of a basket of selected goods
SA
and services in an economy increases
over a period of time.
What is Inflation?
E
currency.
SA
• increase in prices accross in many
goods and services in an economy
over a sustained period of time.
• around this time other states were
fast catching up. In Europe member -
E
states of the European Economic
SA
Community (EEC) had greatly
benefited from the intensification of
regional economic integration.
• this resulted in the less reliance on the US
not only on the aspect of economic but
E
also of security. In Asia the success of
SA
developmental states in Japan, South
Korea and Taiwan in promoting export -
oriented industrialization posed a serious
challenge for US trade position.
. In the 1970's the global economy also
slowed down.
E
. The primary cause was the Oil Crisis in
SA
1973.
. When the Arab member states of the
organization of the Petroleum Exporting
Countries (OPEC) imposed an embargo after
US and its allies decided to supply arms to
to Israel during the Yom kippur war.
* The oil crisis plunge the world
E
SA
economy into stagflation, a
phenomenon in which lack of economic
growth as accompanied by high prices.
* In monetary system, this series of
events led the US to announce in 1971
E
that it will suspend the convertibility
SA
of dollar into gold .
* The Bretton Woods system broke
down and the role of the IMF
collapsed.
Era of Structural Adjustment Program
E
direct foreign investments and global
SA
capital markets. Financial flow found
their way to government in developing
countries that were offered loans. The
Philippines was among these countries
of destinations.
Era of Structural Adjustment Program
E
purpose was to reduce inflation by
SA
contracting economic activity in the
US. The effect of the contractionary
policy was felt by the rest in the
global economy.
Era of Structural Adjustment Program
E
creditors many of whom were US-
SA
based banks who suddenly realized
that many of the loans could not be
repaid.
Era of Structural Adjustment Program
E
from defaulting on their loans. There
SA
was apprehension that it would cause
a global financial crisis. Some critics
in the Philippines argued that the
country
Era of Structural Adjustment Program
E
pressing issues of poverty and income
SA
redistribution, which it was
constrained to do because of the
tough conditions imposed by the IMF.
Era of Structural Adjustment Program
E
adjustment measures.
SA
These measures include
• Reducing government spending
• Tax Reform
Era of Structural Adjustment Program
• Trade Liberalization
• Liberalization of inflows of foreign
E
SA
direct investment
• Privatization and deregulation.
Era of Structural Adjustment Program
E
WASHINGTON CONSENSUS, aimed to
SA
minimize the role of the state in the
economy.
The Philippines and the 1980's Debt Crisis
E
crisis, the Philippines shifted towards
SA
all-out trade, investment and finance
liberalization policies together with
cuts on public spending and
privatization / deregulation of public
The Philippines and the 1980's Debt Crisis
E
tariff reduction programs together
SA
with lifting of import restrictions on
key products as well as reduction or
withdrawal of domestic support for
agriculture
END OF COLD WAR
E
SA
• East Asian Crisis (1997) - started in
Thailand and spread across East Asia,
showed that IMF might have gone too
far in imposing conditionality.
END OF COLD WAR
E
required among European countries
SA
where the Eurozone crisis erupted
include cutbacks on government
spending and raising of taxes.
MULTINATIONAL CORPORATIONS
E
economic globalization. Individuals
SA
consume goods and services produced
by MNC's.
MULTINATIONAL CORPORATIONS
E
or service facilities in one or more
SA
countries other than the home country.
Other refer to them as Transnational
Corporations (TNC's) which connotes
operations in more than one country.
MULTINATIONAL CORPORATIONS
E
and investments. According to Kenichi
SA
Ohmae (1990), they are “a natural
response to a borderless world
economy.”
MULTINATIONAL CORPORATIONS
E
increase in the volume of production.
SA
With open markets, firms can produce
and sell goods or services in multiple
locations.
MULTINATIONAL CORPORATIONS
E
one country by an entry based in
SA
another country, or through Portfolio
Investment, which is a passive
investment on securities (as stocks
and bonds) in a host country.
Reasons for Foreign Corporate Investments
•Market - seeking
E
•Resource - seeking
SA
•Strategic asset - seeking
•Efficiency - seeking
Perspectives on Economic Globalization
E
willingness of the US to act as a
SA
hegemon made possible the
establishment of a liberal global
economy (Gilpin and Gilpin 2001)
Reasons for Foreign Corporate Investments
E
such as, the IMF, World Bank, and the
SA
GATT, have an independent impact on
the global economy.
What is Global Governance?
Is a movement towards political
cooperation among transnational
actors, aimed at negotiating
responses to problems that affect
more than one state or region.
What is Global Governance?
• It refers to the rule making efforts to sustain
cooperation in order to address global
problems or concerns.
• As a subject field entrails an interdisciplinary
examination of power and authority in the
global arena and examines the variety of
actors, institutions, ideas, rules, and
processes that contribute to the
management of global society
What is Global Governance?
• Exploring their origins their evolving roles, as
well as their political, economic, social,
environmental, and ethical consequences.
• In addition to considering international
organizations and inter-state interactions,
global governance gives critical focus to
various non- state actors, formal and
informal networks and broader
transnational, supranational, and subnational
realities of contemporary that
What is Global Governance?
YEAR
INSTITUTIONS HEADQUARTERS FUNCTIONS
ESTABLISHED
Foster global monetary
cooperation; secure financial
stability; facilitate
International
international trade; promote
Monetary 1994 Washington, D.C
high employment and
Fund (IMF)
sustainable economic
growth; reduce poverty
around the world.
Provide financial and
technical assistance to
World Bank 1944 Washington, D.C
developing countries around
the world.
General Promote international trade
Agreement on by reducing or eliminating
1948 Geneva
Tariffs and trade barriers such as tariffs
Trade (GATT) or qoutas
Global Divide
-The concept of a gap between the Global North and the Global South
in terms of development and wealth (Royal Geographical Society).
*Economy
*Poverty
*Development
*Life expectancy
*Literacy
History
*95% has enough food and shelter and functioning education system
as well.
Criticism
Challenges
COMPELLING
REALISM LIBERALISM CONSTRUCTIVIM MARXISM
THEORIES
Capitalist
Democracy, free Norms and ideas
motives cause
trade and can re-constitute
States always conflict between
Central international state behavior,
compete for core, semi-
Argument organizations interests,
power peripheral and
matter to state identities and
pheripheral
behavior. preferences
states
States are State are rational Institutions,
rational actors; actors; including
History is a class
Assumptions international international anarchy, are
struggle
system is system is socially
anarchic anarchic constructed
Focus of
states states individuals World system
analysis
Emmanuel
Kenneth Waltz,
Robert Keohane, Alexander Wendt, Wallerstein,
Theorists John
Joseph Nye Jr. Nicholas Onuf Theotonia dos
Mearsheimer
Santos