UNDERSTANDING GLOBALIZATION Dependency Theory: Emphasizes the constraints imposed

by the global political and economic order.

Definition of Globalization
Drivers of Globalization
Globalization refers to the process by which trade and
technology have increasingly connected the world, making Globalization is driven by several key factors, each
nations more interdependent. The economic and social contributing to the interconnectedness of the world:
changes that have come about as a result.
1. Investment: The role of foreign direct investment (FDI)
Age of Exploration: This is where the pace of global and multinational corporations.
exchange quickened, as European explorers searching for
new sea routes to access Asian spices and silks 2. Technology: Advances in communication and
unexpectedly discovered the Americas. transportation.

Age of Revolution: This is when globalization continues to 3. Political Policies: Government policies promoting
expand, when ideas of liberty, equality, and fraternity economic integration.
spread rapidly from America to France, Latin America, and
beyond. 4. Cultural Exchange: Spread of ideas, values, and
cultural practices.
Information Age: Globalization surged forward
dramatically. Advances in computer and communication 5. Trade - reduction of trade barriers and establishment of
technologies ushered in a new era of global connectivity. trade agreements.

6.Transportation - improvements in shipping and logistics

Why do we need to study Globalization?

By studying globalization and development, we students Evolution of Globalization

will be able to piece together what causes globalization,
Archaic Globalization: Early trade routes, such as the Silk
what effects globalization would have on underdeveloped
Road, connected East and West.
parts of the world and their people, and how our local
community is affected by and affects global forces and Proto Globalization: The Age of Exploration and expansion
trends. (Ohio University). of global trade routes.
can gain insight into the complex relationships between Modern Globalization (19th century - early 20th century):
countries, and the impact of global trade and The industrial revolution and the integration of global
communication. markets.
see how global forces influence their local communities Contemporary Globalization (late 20th century - present):
and how they, in turn, can shape global dynamics Post-World War II international institutions and the digital
age.

PERSPECTIVES TO GLOBALIZATION
Dimensions of Globalization
In Holton’s book, "Making Globalisation" (2005), he
recognized three key perspectives in globalization Cultural Globalization: Cultural exchange and the
theory—hyperglobalist, skeptical, and transformationalist. influence of global media networks.
1. Hyperglobalist Perspective: This view is positive about Economic Globalization: Integration of global financial
globalization and argues that global capitalism has done a markets and the role of multinational corporations.
lot of good. Hyperglobalists see globalization as a process
that is inevitable and beneficial Political Globalization: International organizations such as
the UN, and global governance policies.
2. Skeptical Perspective: This view is negative about
globalization and argues that global capitalism has Environmental Globalization: Global environmental issues
increased inequality and exploitation. Skeptics see like climate change and sustainable development.
globalization as a myth or a cover for the domination of
Western powers. Technological Globalization: Advances in communication
and transportation technologies.
3. Transformationalist Perspective: This view is neutral
about globalization and argues that global capitalism has Social Globalization: Issues like migration, global health,
created new opportunities and challenges. and human rights.
Transformationalists see globalization as a process that is
complex and unpredictable. Ideological Globalization: Spread of political, economic,
and social ideologies.

Legal Globalization: international law: development and

Approaches to Globalization enforcement of internation legal standards. human rights
law: global promotion and protection of human rights
World-systems Theory: A world system is a “multicultural
territorial division of labor in which the production and
exchange of basic goods and raw materials is necessary
for the everyday life of its inhabitants.” (Wallerstein, 1974) IDEOLOGICAL DIMENSION OF GLOBALIZATION

Modernization Theory: Explains how societies develop An ideology can be defined as a system of widely shared
and become modern, assuming that all societies follow a ideas, patterned beliefs, guiding norms and values, and
similar path of development. ideals accepted as truth by a particular group of people.
 Coined during the French Revolution by Antoine Destutt they are interconnected sets of elements organized
de Tracy, “Ideologie” referred to a new science of ideas, coherently to achieve something.
literally an idea-logy. (Heywood, 2012:5)

Adolf Hitler, the Führer (Leader) of the Nazi Party,

formulated and articulated the ideas that came to be TRADITIONAL AND MODERN IDEOLOGIES
known as Nazi ideology. Hitler believed that a person's
characteristics, attitudes, abilities, and behavior were - Political Ideology: A comprehensive set of beliefs about
determined by his or her so-called racial makeup. In the political world and the best ways to achieve desirable
Hitler's view, all groups, races, or peoples carried within goals.
them traits that were passed from one generation to the
- Liberalism: Committed to individual and societal
next. No individual could overcome the qualities of race.
interests, focusing on individual rights, democracy,
All of human history could be explained in terms of racial
secularism, and market economy. Became popular during
struggle.
the Age of Enlightenment.
Globalism - It can be more or less defined as a set of
Classical Liberal View
logical ideas that explains how the flow of goods,
information, and services is taking place in the global Negative or “Modern” Liberty – freedom from
community. governmental authority or regulations, from the
church or from ascribe status

Socialist and Welfare Liberal View

ELEMENTS OF IDEOLOGY
Positive or “Ancient” Liberty – freedom to
- It must have a power over cognition: Reviews empirical
participate in political life or freedom to live a
evidence in both the policies and world politics about how
healthy life without poverty or lack of medical
having or lacking power affects cognitive processes that
care.
underlie judgment and behavior realistically grounded in
assumptions and knowledge. Conservatism - Promotes retaining traditional social
institutions.
- Capable of Guiding One’s Evaluation: An ideology which
focuses on the mental attitude, consciousness, or set of Socialism - Social and economical doctrine that calls for
ideas that the ruling class held, consciously or public rather than private ownership or control of property
unconsciously. and natural resources.
- Provide Guidance Towards Action: Acts as a principle or Fascism - is the ideology of nationalism upheld by an anti-
set of principles by which to change society by providing a democratic and totalitarian state. Fascism prioritizes the
set of ethical principles and values. nation over the individual, who existed to serve the nation
over the individual, who existed to serve the nation.
- Logically Coherent: Logical and complete with plenty of
supporting facts. EMERGING IDEOLOGY OF GLOBALISM

Globalism promotes interconnectedness of nations,

supports international cooperation, open markets, and
FUNCTIONS OF IDEOLOGY
shared global challenges. Encourages free flow of ideas,
- Political Ideology: Helps to explain current situations, cultures, and economies across borders. Advocates for
evaluate the projects of the government, orient and helps solving global problems like climate change and economic
in political programs. crises through collective action.

- Social Ideology: Cultural beliefs that justify particular

social arrangements, including patterns of inequality.

- Epistemology Ideology: Concerned with the theory of SIX CORE CLAIMS OF GLOBALIZATION
knowledge and the relationship between the mind and reality.
1. Globalization is about the liberalization and global
integration of markets.

2. Globalization is inevitable and irreversible.

IDEOLOGY AND SOCIAL IMAGINARY 3. Nobody is in charge of globalization; markets and

technology are.
SOCIAL IMAGINARY: Imaginary System that holds
society together. Provides the web of meanings and 4. Globalization benefits everyone.
structures that guide our collective and individual actions
5. Globalization furthers the spread of democracy in the
and values.
world.
SOCIAL IMAGINARIES: Citizens - players; norms,
6. Globalization requires a global war on terror.
assumptions, and attitude - rules. We play along these
imaginary rules to participate in society.

POLITICAL DIMENSION OF GLOBALIZATION

WHEN WE RECOGNIZE THE EXISTENCE OF SOCIAL
IMAGINARIES THE CONTEMPORARY WORLD
Understand why there are patterns of meaning in things: CONCEPT OF NATION-STATE
words, gestures, policies, preferences, metaphors, "Nation" and "State" are often used interchangeably by
institutions. These everyday phenomena carry social social science scholars. However, a closer examination
meaning. Social imaginaries are systems - just like games; shows they have distinct meanings.
CONCEPT OF NATION STATE THE UNITED NATIONS
Organization that established an international system.
Andrew Heywood (2007) defines a nation as a "cultural Provided practical means for modern nation-states to
entity," typically a group sharing language, religion, and articulate their concerns regarding international issues.
history, such as those bound by the Islamic faith. In
contrast, a state is a "political association" with sovereign
jurisdiction and defined borders, functioning through
permanent institutions. EMERGENCE OF GLOBAL TERRORISM

CHARACTERISTICS OF NATION-STATE 1. U.S. prominence in the global war on terrorism

Marked and Administered Territory 2. Aftermath of the Iraq war

The first characteristic defines the nation-state as a
political entity with a clearly marked and administered 3. Philippines’ struggle
geographical territory.
DECLINE OF THE NATION-STATE
Organization that Imposes its Will
Michael Mann
The second characteristic views the nation-state as a
powerful organization that imposes its will on its people 1. Transformation of Capitalism
and territory. 2. Environmental Challenges
3. Rise of New Social Movements
Existence of a Political Structure
4. Post-militarism
The third characteristic establishes the nation-state's
political structure, or "government," which enables the
systematic administration of its people and territory.
REGIONALISM IN THE CONTEMPORARY WORLD
Existence of Fixed Boundaries
The fourth characteristic outlines the nation-state's REGIONALISM
geographical territory with fixed boundaries at entry and Refers to the tendency of countries within a specific
exit points. geographical region to cooperate and coordinate policies
to achieve common goals.
Monopoly in the Application of Force A highly contested concept that has received the full
The fifth characteristic gives the nation-state a stable attention of the scholars of globalization in recent times.
government with a monopoly on the use of physical force. This cooperation often manifests through the formation of
regional organizations, trade agreements, security pacts,
Existence of Quality Population
and cultural exchanges.
The sixth characteristic provides the nation-state with a
quality population that supports its government and gives REGIONALISM AND GLOBALIZATION
it a sense of identity in the global community.
Involves the emphasis on the interests, cultures, and
Presence of Committed Inhabitants cooperation within a specific region rather than focusing
The seventh and last characteristic of the nation-state on global dynamics.
speaks about the availability of committed inhabitants that
matches the existence of a responsible government. GLOBALIZATION
It involves the removal of barriers to trade, communication,
and cultural exchange, leading to a more integrated and
interconnected world.
RISE AND DOMINANCE OF NATION-STATE
“Regionalism improves Globalization.”
TREATY OF WESTPHALIA (1648)
Marked the end of wars and established a new national
order. SCHOLARS’ PERSPECTIVES
PRINCIPLES THAT DEFINED MODERN NATION-STATE “The concept of regionalism refers specifically to the state-
led project, an initiative of several states that outlines their
Territoriality
broad economic and political objectives.”
authority is tied to a specific geographic area where the
Payne and Gamble (1996)
members can freely enjoy the benefits of statehood
Regionalism vs. Regionalization
Sovereignty
the state has absolute authority over a defined territory. Mansfield and Solingen (2010):
“Regionalism is a concept that is ordinarily understood to
Autonomy
involve policy coordination through formal institutions. This
ability of the state to make its own decisions and govern
coordination occurs among the states that are located in
itself without external control
close geographic proximity.”

THE PEAK OF NATION-STATE

TYPES OF REGIONALISM:
Conclusion of the First World War
Economic Regionalism
The Treaty of Versailles
Involves economic cooperation to enhance trade,
Ascendance of Woodrow Wilson as the president of the
investment, and economic growth within a region.
United States of America
Political Regionalism
WOODROW WILSON
Aims at creating a unified political stance or governance
He advocates for self-determination and viewed it as
structure among member states.
essential for each nation-state to pursue its destiny in the
global community. Security Regionalism
Focuses on collective security and defense cooperation to
address common threats.
 Cultural and Social Regionalism • International rules and laws
Encourages the promotion and preservation of shared
cultural, linguistic, and social values. • International norms

• International regimes
DRIVERS OF CONTEMPORARY REGIONALISM:
• Ad-hoc groups
1. Globalization
• Global conferences
2. Geopolitical Shifts
“UNITED NATIONS” - The concept of Global Governance
3. Economic Competition and Trade Wars for most part is manifestly affected or influenced by the
ability of the different political actors in the global
4. Security Concerns
community.
5. Cultural and Identity Preservation

Economic Dimension of Globalization

CHALLENGES TO REGIONALISM
Economic Globalization
1. Economic Disparities The economic dimension of globalization provides another
perspective on how the contentious concept of
2. Political Instability globalization should be understood. Majority of the early
discussions about globalization centered on its economic
3. External Influences dimension, a process that refers to the “intensification and
stretching of economic connection across the globe.”

I. GLOBAL ECONOMIC ORDER IN THE EARLY YEARS

GLOBAL CIVIL SOCIETY
Mercantilism Dominates European Economies
Global Civil Society - All non-governmental groups, European powers focused on mercantilism to strengthen
associations, and institutions (other social movements in national wealth. They extracted valuable resources (gold,
both local and international community) that citizens form silver, raw materials) from colonies and foreign territories.
and join. Restricted imports from colonies but exported goods
freely, benefiting their own economies.
Examples:
Religious Organizations Impact on Colonized Territories
Professional Associations Primarily seen as sources of wealth and markets for
Charitable Groups European products. System favored European powers,
Interest Groups often at the expense of the economic development of the
colonized regions.
Since its inception in the early 1900s, global civil society
has remained an elusive (difficult) concept in the process Shift During the Industrial Revolution
of understanding the phenomenon of globalization. Transition to free trade - Over time, the country moved
toward free trade, repealing laws like the Corn Laws that
They serve as alternative institutions in checking the
restricted international agricultural trade.
inefficiencies of the governments and act as advocates of
several interests. Global Adoption of the Gold Standard
In 1870, Great Britain pushed for a single international
monetary system to facilitate trade. The adoption of the
ACHIEVEMENTS OF GLOBAL CIVIL SOCIETY gold standard stabilized international trade by providing a
common system for valuing currency.
1. Global Accountability
II. EMERGENCE OF THE NEW GLOBAL ECONOMIC
2. Participation and Empowerment ORDER

3. Cultivation of Alliances Bretton Woods Conference (1944) - A landmark

conference where economists laid the foundation for the
4. Raising Awareness new global economic order.

5. Shared Humanity OBJECTIVES of the Conference

6. Application of Innovations
• Promote international trade through a liberal framework.

• Create a stable international monetary system.

GLOBAL GOVERNANCE
• Establish a universal currency system pegged to a fixed
Relations in the global community are established and the value.
way international issues are fundamentally resolved.
Engages several international actors, public and private, • Propose crucial economic institutions to maintain global
that are deemed useful in facilitating the resolution of financial stability.
complex issues besetting the global community.
“Global governance does not mean one global Trade and Approaches:
movement.” Protectionism - dominated prior to the Industrial
Revolution.
PIECES OF GLOBAL GOVERNANCE:
Liberalism - became prominent in the postwar period,
• International structures and mechanisms focusing on reducing trade barriers to promote global
economic integration.
 III. INTERNATIONAL TRADE AND GLOBALIZATION • BRETTON WOODS SYSTEM (1944 -1970): An adjustable
(Cohn, 2012) peg arrangement, where each country pegged their
INTERNATIONAL TRADE - Refers to the buying and currencies to an anchor currency (the US dollar), and the
selling of goods and services between businesses located value of the anchor currency was set in relation to gold.
in different nations.

PERIODS IN THE INTERNATIONAL TRADE

• MIXED SYSTEM OF FLOATING AND FIXED EXCHANGE
RATE (1970-Present): Countries can choose whether to
utilize the floating or fixed exchange rate system.
• PRE-INDUSTRIAL PERIOD (BEFORE 1400S - 1700S)
VI. International Economic Institutions
Mercantilism - The wealth of a nation is based on their
gold and silver reserves
• International Monetary Fund (IMF) - Focused its attention
Start of European Globalization (Colonization) - The major primarily to the administration of the monetary system-
European countries began to establish colonies in distant pegged exchange rate system.
territories, turning them into key sources of income..
• International Bank for Reconstruction and Development
• POST-INDUSTRIAL REVOLUTION (World Bank) - Or World Bank (WB). Was mandated by its
Transition to industrialization - cobden-chevalier member countries to provide the necessary funds to a
treaty - general agreement on tariffs and trades - the first number of countries that needed the costly post-war
world war and the reconstruction.
Bretton woods institutions -world trade organization
• World Trade Organization (WTO) - Succeeded the place
• INDUSTRIAL REVOLUTION (1800S - PRESENT) of the General Agreement on Tariffs and Trade (GATT).
Was more effective and authoritative than the agreement.
The wealth of a nation is based on their gold and silver In fact, it has succeeded in several areas where the
reserves. agreement was not able to capitalize.

TRANSITION TO INDUSTRIALIZATION • Organization for Economic Cooperation and Development

COBDEN-CHEVALIER TREATY (OECD) - Created in 1961 with the clear objective of
THE FIRST WORLD WAR AND THE BRETTON WOODS improving the international economy through consultations
INSTITUTIONS and adoption of sound economic policies. Provides
GENERAL AGREEMENT ON TARIFFS AND TRADES avenue by which member countries can discuss
WORLD TRADE ORGANIZATION successful experiences in responding to persistent
international economic problem.

INTERNATIONAL FINANCE AND GLOBALIZATION • Asian Development Bank (ADB) - Operates on the
regional level and concentrates its resources to several
POST-WWII INTERNATIONAL FINANCE developing countries in the Asia Pacific region. Was
The major European countries began to establish colonies established in 1996 by the Tokyo Study Group led by
in distant territories, turning them into key sources of Kaoru Ohashi, Makoto Watanabe and Takeshi Watanabe
income.
• Asian Infrastructure Investment Bank (AIIB) - Latest
Fixed Exchange Rate - A system implemented by a iteration of the international economic institution in the
government or central bank that links the official exchange early years of the 21st century. Was established in 2015,
rate of its currency to another country's currency or to the supported by China.
value of gold.

Floating Exchange Rate - A system in which a country's

currency value is determined by the foreign exchange VII. GLOBAL ECONOMIC INSTABILITY
market, influenced by supply and demand in relation to
other currencies. The Great Depression of 1929 - Worst economic
recession in the 20th century, originating in the USA,
Financial Crisis - An event wherein asset prices fall lasting until the early years of WWII. President Roosevelt’s
sharply, businesses and consumers are unable to repay New Deal Program increased federal government
their debts, and financial institutions face liquidity spending and provided loans to companies.
shortages.
Oil Price Shock of 1973 - Orchestrated by oil-producing
countries to pressure the USA to reduce support for Israel,
resulting in a dramatic oil price increase.
INTERNATIONAL MONETARY SYSTEM
Debt Crisis of the 1980s - Initiated by Mexico’s declaration
Monetary System Description - Policies and official of inability to meet its financial obligations, followed by
arrangements related to the balance of payments. These several developing countries facing debt restructuring.
include the prevailing exchange rates, international
reserves, current payments, and capital flows (Lipsky, Asian Financial Crisis of 1997 - Marked by massive capital
2010). outflows from Thailand, impacting neighboring countries.

• CLASSICAL GOLD STANDARD (1870 - 1914): A financial Global Financial Crisis of 2007 - Sparked by a subprime
system where a nation's currency is tied to a specific value mortgage crisis in the USA due to excessive risk-taking
of gold. and borrowing.

• GOLD EXCHANGE STANDARD (1914 - 1944): A modified

version of the gold standard where a country's currency is VII. GLOBAL NORTH AND SOUND DIVIDE
not directly convertible into gold for the public, but is
instead tied to another currency that is backed by gold.
The difference between the countries of the global north
and the global south in terms of their accumulated wealth
and levels of development.
Global North includes developed, influential countries,
while Global South represents poorer, less developed
nations.

The Brandt Commission The Brandt Commission

popularized the Brandt Line that metaphorically classified
the world between the global north and the global south.
(only appropriate in the 1980s)

Global North

• “More economically developed”

• Composed of influential countries that have
dominated the flow of goods, services, and
capitals in the past two centuries
• Rich, capitalist countries that control major
stakes in several international economic
institutions (Harris, Mick, Moore, Schmitz, 2009)
• Canada, USA, France, Germany, Australia,
United Kingdom, Spain, Japan, South Korea
and New Zealand

Global South

• “Less economically developed”

• Developing countries
• Unquestionably poor and are not capable of
influencing a number of major policy decisions
in the international community.
• Latin America, Asia, Africa, Oceania (Dados and
Connell, 2012).
• Symbolic designation of the previous colonial
countries engaged in the process of establishing
their relevance in the contemporary world
(Grovogu, 2011) Global North Global South