2. pesoN 1 Whats Globalization? 2
Global Experiences 5
Some Description 6
Globalization: A Working Definition 7
Conclusion: Globalization from the Ground Up 9
LESSON 2 The Globalization of World
Economics 12
International Trading Systems 13
The Bretton Woods System 16
Neoliberalism and Its Discontents 17
The Global Financial Crisis and the Challenge
to Neoliberalism 19
Economic Globalization Today 22
Conclusion 24
ic, mechanica
thout the prio
E. Claudio and
& E Publishing,
(issoN3 A History of Global Politics:
Creating an International Order 26
The Attributes of Today's Global System 27
The Interstate System 30
Internationalism 31
Conclusion 37
cs. I. Abinales,
LESSON 4
3. LESSON 5
Unit 2
LESSON 6
LESSON 7
LESSON 8
The United Nations and Contempor:
Global Governance 39
What is an International Organization? 40
The United Nations 42
Challenges of the United Nations 45
Conclusion 46
A World of Regions 50
Countries, Regions, and Globalization 51
Non-State Regionalism 53
Contemporary Challenges to Regionalism 56
Conclusion 58
A World of Ideas:
Cultures of Globalization 61
The Globalization of Religion 62
Realities 65
Religion for and against Globalization 66
Conclusion 69
Media and Globalization 72
Media and Its Functions 73
The Global Village and Cultural Imperialism 75
Critiques of Cultural Imperialism 77
Social Media and the Creation
of Cyber Ghettoes 78
Conclusion 81
4. The Global City 83
Why Study Global Cities? 84
Defining the Global City 85
Indicators for Globality 86
The Challenges of Global Cities 89
The Global City and the Poor 91
Conclusion 93
Unit 3 Movi
and |
LESSON 9 Globes
The “Pe
It's the
Womer
The Fer
Popula
Conclu
wsson 10 Glob:
What is
Benefit
Cou
The Pre
Integre
LESSON 11 Envi
and |
The Wi
Man-n
“Catch
Climat
Comb:
Conclt
Conclusion: The
Endnotes 135
5. Bibliography 1
Index 172
About the Auth
itempor
40
51
m 75
Unit 3
LESSON 9
LESSON 10
LESSON 11
Movement
and Sustainability 95
Global Demography 96
The “Perils” of Overpopulation 98
It's the Economy, Not the Babies! 101
Women and Reproductive Rights 102
The Feminist Perspective 104
Population Growth and Food Security 105
Conclusion 107
Global Migration 109
What is Migration? 109
Benefits and Detriments for the Sending
Countries 112
The Problem of Human Trafficking 114
6. Integration 115
Environmental Crisis
and Sustainable Development 119
The World's Leading Environmental Problems 120
Man-made Pollution 122
“Catching Up” 125
Climate Change 127
Combating Global Warming 128
Conclusion 130
Conclusion: The Global Filipino 132
Endnotes 135
Bibliography 155
Index 172
About the Authors
An Introductory Note
to the Student
Why do you need to study the world? At first glance, the
world, as a concept, is abstract. After all, your daily experiences
are considered interactions with your country. When you read
ihe news, you read about the Philippines. When you engage in an
ulficial transaction like paying taxes, you deal with the Philippine
government. Almost all of your classmates and teachers are
Filipino.
However, you only need to step back a little bit to see that the
world “out there” is already here. For example, you likely have
relatives who are overseas Filipino workers (OFWs). Every time
these relatives visit or send something home, they are bringing
prt of the world with them. Even if you have not traveled outside
the Philippines, you have likely heard stories about foreign
7. countries from these family members. Some relatives might have
told you about the wonders of Rome. Others may have shown you
pictures of San Francisco's Golden Gate Bridge. Others may have
described the lights and towering buildings of Shinjuku.
Needless to say, the media and the internet are also your
windows to the contemporary world. You watch American movies
and can probably sing at least one K-pop song. If a major political
event occurs, you don’t even need to go to CNN.com to find out
more details; friends are already posting articles on Facebook.
Finally, your consumption habits are global. You have dined
inn a McDonald’s, ridden in a Japanese car, maybe owned a Korean
mobile phone, and eaten Australian beef.
You are already a citizen of the world whether you are aware of
it or not. Just by living your life, you automatically think about the
contemporary world. This course will be your guide.
The Relevance of this Course
As the semester progresses, we expect you to realize the
relevance of the material gradually. The succeeding lessons will
introduce you to the major themes in the study of the world while
providing opportunities for you to connect this knowledge with
your experiences as a Filipino student. At the outset, though, why
study this course? Why is it required for all students in higher
education?
First, studying the outside world is a cure to parochialism
or an outlook that is limited to one’s immediate community. A
person who is concerned only with his/her family, village, or even
country is parochial. The parochial person is, thus, close-minded.
By teaching you about the world, this course aims to stretch the
limits of your imagination and outlook. We will share with you
unfamiliar ideas and cultures that may spark new interests and
concerns. Not everything in this book will excite you, and that is
fine. However, we hope that, at the end of the semester, you would
have discovered new intellectual interests that you will continue to
pursue. We also wish for you to explore the places, peoples, ideas,
and cultures that you care about and value. This expansion of one’s
ethical horizons, as you will see, is the very core of what it means
8. to be a global citizen.
Second, it is important to study the world because it can
teach you more about yourself. Knowing about other countries
allows you to compare your society with others. The experiences
of communities outside the Philippines may provide solutions to
many of the country’s current problems. They may also provide
warnings about what not to do. Everyone, for example, desires
economic growth. Isn't it beneficial if policymakers know what
economic models and policies have worked for other countries and
what have not? Philippine national hero Jose Rizal said that anyone
who has learned about the world will be haunted by the “ghost of
comparisons.” Once you know about other societies, he says, you
will not be able to look at your own in the same way: You will start
comparing and asking various questions. This drive to compare
will happen even when
that suddenly appears.
lastly, you need tc
Wteracting with it. In 2
left to become OFWs. |
Mate and more Filipino
ul you who plan to we
iliis course can serve a.
who choose to remair
phenomenon of global
Lutpanies operating 1
growth of call centers a
idlustry as a whole. Du
larger trade of goods
interdependent. Filipin
interdependence. You «
an well study it.
This Book's App
This book will not
the world. Such an app
any good world almas
countries. Instead, thi
issues. The goal is not
but also to expose you
9. that “out there.” Centr
globalization—the dee
ideas, economies, cult
this concept further. |
studying globalizatior
going on in our world
As the study of
attention deliberately
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lize the
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10. | start
npare
will happen even when you least expect it; the urge is like a ghost
that suddenly appears.
Lastly, you need to study the world because you will be
interacting with it. In 2009, an average of 4,018 Filipinos per day
left {0 become OFWs. In 2015, that number increased to 6,092.
Mare and more Filipinos are living and working abroad. For those
uf you who plan to work in another country after graduation,
{his course can serve as an orientation. Nevertheless, even those
who choose to remain in the Philippines must confront the
phenomenon of globalization. Many of you will work for foreign
uimpanies operating in the country, especially because of the
growth of call centers and the busines process outsourcing (BPO)
Industry as a whole. Due to the internet, cheaper travel costs, and
larger trade of goods and services, the world has grown more
interdependent. Filipinos are increasingly becoming aware of this
interdependence. You cannot avoid globalization so you might at
an well study it.
This Book's Approach
T'his book will not take you on a country-per-country tour of
{lie world. Such an approach is impractical and tedious. Moreover,
any good world almanac can give you quick overviews of these
Countries. Instead, this book will focus on themes, problems, and
issues. The goal is not simply to tell you about what is “out there,”
Lut also to expose you to the ideas that allow you to make sense of
(hat “out there.” Central to the study of the world is the concept of
globalization—the deepening global interconnectedness of places,
leas, economies, cultures, and people. The first lesson will discuss
(his concept further. However, for now, it is sufficient to say that
studying globalization allows one to step back and ask: “What is
going on in our world today?”
As the study of globalization progresses, we will take your
attention deliberately away from the Philippines. Most of the
11. core courses of the new general education (GE) curriculum ask
xi
questions about yourself in a national context. You study Rizal;
examine primary readings in Philippine history; and, in the course
Understanding the Self, a section leads you to reflect on national
identity. These courses are all necessary; you should reflect about
yourself and your country. This course, however, will challenge
you to think beyond your country and ask what it means to be a
citizen of the world. Thus, most of the examples and case studies
will be about peoples and places outside of the Philippines.
Nevertheless, we acknowledge the need to connect the study of
globalization to local experiences. For this reason, we will use
the boxed text with the label “Localizing the Material” to provide
examples that are relatable to the Filipino reader.
As for classroom activities, it will be up to your teacher to
integrate, conduct, and facilitate them. After each lesson, however,
we provide guide questions which you may wish to answer before
the class. As you answer these questions either on a notebook
or just in your own mind, please do not lose sight of the main
question of the course: What does it mean to be a citizen of the
world?
The course will be challenging. Much of the materials you
will find are new and unfamiliar. Despite this, we hope that you
will enjoy reading this book and taking this course. This may be
one of the few times in your life as a college student when you are
explicitly challenged to transcend the borders of your nation, your
countrymen, and ultimately, your imagination.
~ Lisandro E. Claudio
Patricio N. Abinales
xii
tudy Rizal;
1 the course
on national
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Claudio
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The Structures
of Globalization
This unit will introduce you to the various
drivers of the globalization process, with
specific focus on economics and politics.
Although it emphasizes that you experience
globalization on an “everyday” level, you must
also realize that there are big institutions
that create large-scale changes. This unit will
first trace the emergence of these institutions
historically. It will then move on to explain how
they affect the countries and people today.
The major learning outcomes of this unit
are to:
« analyze the various contemporary
drivers of globalization; and
13. « describe the emergence of global
economic and political systems.
Learning Outcomes
At the end of this lesson, you should be able to:
i
agree on a working definition of globalization for the course;
2.
differentiate the competing conceptions of globalization; and
3. narrate a personal experience of globalization.
A Story: Gio, Latif, and the Laksa
When Gio was a second-year international affairs student in
a university in Cebu City, he obtained funding to join the school
team participating in an international
in Sydney, Australia. At the height of the
plenty of new friends and became particularly close to Latif from
the Malaysian team. The two first started talking when Latif asked
Gio where he was from. Upon discovering that the Gio was from
the Philippines, Latif [it up and declared that he was 3 big fan of
Filipino actors Jericho Rosales and Kristine Hermosa. Gio was
pleasantly surprised to learn that Latif had seen every episode of
the ABS-CBN telenovela Pangako sa "Yo ("The Promise”). The show
had aired on Malaysian TV a few years back, and its two stars had
developed a modest following.
Ashamed that he did not know
Latif knew about the Philippines, Gio asked Latif what his country
was like. Latif, he discovered, was from a Muslim university in Kuala
Lumpur. Gio asked him what he liked best about living in “KL,”
and Latif immediately mentioned the food. Latif explained that in
Kuala Lumpur, one can find Chinese, Indian, and Malay cuisines.
He told Gio that this assortment of foodways was the result of
Model UN competition
competition, Gio made
as much about Malaysia as
14. how the British reo
Hines. The British d
who were the orig
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help manage the
tne of a potential |
Hioups were identi
According to
these cuisines whi
acioss the nation’s
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Malaysia, from nasi
Glo interrupte
ashamed at his lac
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[he next day,
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Malaysian food w
this, Latif explaine
imore and more A
Malaysian restaura
not only to these
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Gio finally ha
i spicy coconut «
like most Filipino
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enjoying the hot ¢
After the me
ordered “flat whi
usually served in
what flat whites v
both Kuala Lump
What is Globalization? 3
15. Iw the British reorganized Malaysian society during the colonial
Hines The British did little to change the way of life of the Malays
whi were the original residents, but brought in Chinese laborers
ii work in the rubber plantations and tin mines, and Indians to
help manage the bureaucracy and serve as the initial professional
(ie of a potential middle class. One of the ways that these ethnic
groups were identified was through their foodways.
According to Latif, Malaysia eventually became famous for
ihese cuisines which can be found in the various “hawker centers”
4 104s the nation's cities and towns. These food stands are located
in outdoor food parks where locals and tourists taste the best of
Malaysia, from nasi lemak to laksa.
(ilo interrupted Latif and asked, “What is laksa?” He felt more
: ashamed at his lack of knowledge. “Ahh. ..let me show you what it
Is and how it is prepared!” replied Latif.
he ! Ihe next day, Latif took Gio to a Malaysian restaurant a few
etition i blocks away from the university, Cig was surprised to discover that
ui. Malaysian food was readily available in Sydney. Having noticed
if Shik this, | atif explained to his Filipino friend that, over the years, as
fad more and more Malaysian students moved to Sydney to study,
s Ford Malaysian restaurants followed suit. Soon after, He Selig
fan of IN not only to these students, but to Australia-born Sydneysiders
oa 44 well, whose culinary tastes were becoming more and more
de i diverse.
show Gio finally had his first taste of laksa—a rice noodle soup in
rs had 4 spicy coconut curry sauce. He found the flavors intense since,
like most Filipinos, he was not used to spicy food. However, in
ia lef rence to his friend, he persisted and eventually found himself
unr enjoying the hot dish.
Kuala After the meal, Gio and Latif went to a nearby café and
KL” ordered “flat whites’—an espresso drink similar to latte, which is
Lat if Usually served in cafés in Australia and New Zealand. Both knew
ines. what flat whites were since there were Australian-inspired cafés in
both Kuala Lumpur and Cebu.
ult of
4 | The Structures of Globalization
16. Laksa: a rich and spicy rice noodle soup
The new friends promised to stay in touch after the
competition, and added each other on Facebook and Instagram.
Over the next two years, they exchanged e-mails and posts,
congratulated each other for their achievements, and commented
on and liked each other's photos. Latif sent his mother’s recipe to
Gio and the latter began cooking Malaysian food in his home.
A few years after graduation, Gio moved to Singapore, joining
many other overseas Filipino workers (OFWs) in the city-state.
The culture was new to him, but one thing was familiar; the
food served in Singapore was no different from the Malaysian
food he had discovered through Latif. He would later learn from
Singaporean colleagues that the island country was once part
of the British colony of Malay and the postwar independent
Federation of Malaysia. Singapore, however, separated from the
Federation in August 1965 and became a nation-state. Today,
they may be two distinct countries in this part of the world, but
Singapore and Malaysia still share the same cuisine.
After he settled down in his apartment, Gio sought out and
found a favorite laksa stall in Newton Hawker Center. He would
spend his weekends there with with friends eating laksa and other
dishes.
One" S
along the
foad—he |
earlier, It v
excited, Gi
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What is Globalization? | 5
A hawker center in Singapore
One Saturday, while Gio was checking his Facebook feed
along the very busy Orchard Road— Singapore's main commercial
(bacl—he noticed that Latif had just posted something 5 minutes
earlier. It was a picture from Orchard Road. Surprised but also
oxcited, Gio sent Latif a private message. Latif replied immediately
saying that he too had moved to Singapore and was, at that
moment, standing in front a department store just a few blocks
away from where Gio was. The two friends met up, and after a
long hug and quick questions as to what each was up to, they
ducked into a café and renewed their international friendship. . .by
ordering a pair of flat whites.
Global Experiences
Gio and Latif’s story is fictional but very plausible since it is,
in fact, based on the real-life experience of one of the authors. It
was through such friendships that one was able to appreciate the
meaning and impact of globalization.
We begin our definition of globalization with this narrative
to illustrate how concrete the phenomenon is. The story shows
how globalization operates at multiple, intersecting levels.
The spread of Filipino TV into Malaysia suggests how fast this
popular culture has proliferated and criss-crossed all over Asia.
6 | The Structures of Globalization
18. The Model UN activity that Gio and Latif participated in ig
an international competition about international politics. Gio
met Latif (a Malaysian involved in the model UN) in Sydney, a
fic ibly removed fr
liy foreign compar
and then told tha
global city that derives its wealth and influence from the global
capital that flows through it. Sydney is also a metropolis of
families of international immigrants or foreigners working in the
industries that also sell their products abroad. After the two had
gone back to their home Countries, Gio and Latif kept in touch
through Facebook, a global social networking site that provides
instantaneous communication across countries and continents,
They preserved their friendship online and then rekindled this
face-to-face in Singapore, another hub for global commerce, with
40 percent of the population being classified as “foreign talents.”
What other hints of globalization did you find in the story?
Some Description
Our discussion should begin with this intuitive sense that
something is happening, and it is not affecting everyone in the
same way. Gio’s story is a very privileged way of experiencing
global flows, but for other people, the shrinking of the world may
not be as exciting and edifying. For example, it is very common
for young women in developing countries to be recruited in the
internet as “mail-order brides” for foreign men living in other
countries. After being promised a good life once married to a kind
husband in a rich city, they end up becoming sexual and domestic
servants in foreign lands. Some were even sold off by their
“husbands” to gangs which run prostitute rings in these cities. Like
Gio, they too have experienced the shrinking of the world, albeit
negatively.
Governments that decide to welcome the foreign investments
on the belief that they provide jobs and capital for the country
offer public lands as factory or industrial sites. In the process, poor
people living in these lands, also called “urban poor communities,”
19. are being evicted by the government. The irony is that these people
from their reloca
winimum-wage we
Because differ
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globalization goo
discussion begins
(omplex phenome
#1 ineven process
Globalizatio
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and intensifica
What is Globalization? 167
Hl - forcibly removed from their “slums” are also the labor force sought
- Gio by foreign companies. They had to be kicked out of their homes,
20. ikl and then told that they could take an hour or two of bus travel
lobal from their relocated communities back to the “old home” for
is of minimum-wage work.
n the
Sid Because different people encounter globalization in a variety
ed of ways, it is deemed useful to ask simple questions like: “Is
id globalization good or bad? Is it beneficial or detrimental?” The
- discussion begins with two premises. First, globalization is a
this complex phenomenon that occurs at multiple levels. Second, it is
with an uneven process that affects people differently.
: Globalization: A Working Definition
Most accounts view globalization as primarily an economic
process. When a newspaper reports that nationalists are resisting
“globalization,” it usually refers to the integration of the national
that markets to a wider global market signified by the increased free
He trade. When activists refer to the “anti-globalization” movement
fit of the 1990s, they mean resisting the trade deals among countries
ad facilitated and promoted by global organizations like the World
cari Trade Organization.
the
he Globalization scholars do not necessarily disagree with people
ind who criticize unfair international trade deals or global economic
Hic organizations. In fact, many are sympathetic to the critique of
rl economic globalization. Academics differ from journalists and
ike political activists, however, because they see globalization in much
AA broader terms. They view the process through various lenses that
consider multiple theories and perspectives. Academics call this
an interdisciplinary approach, and it is this approach used by the
i general education (GE) courses that you will be taking alongside
of this one.
os,” The best scholarly description of globalization is provided
ple by Manfred Steger who described the process as “the expansion
and intensification of social relations and consciousness across
8 | The Structures of Globalization
world-time and across world-space.” Expansion refers to “both
the creation of new social networks and the multiplication of
existing connections that cut across traditional political, economic,
cultural, and geographic boundaries.” These various connections
occur at different levels. Social media, for example, establish new
global connections between people, while international groups
21. of non-governmental organizations (NGOs) are networks that
connect a more specific group—social workers and activists—
from different corners of the globe. In the story, Gio was able to
join a Model UN competition because his university was part of an
international network.
Intensification refers to the expansion, stretching, and
acceleration of these networks.’ Not only are global connections
multiplying, but they are also becoming more closely-knit and
expanding their reach. For example, there has always been a
strong financial market connecting London and New York. With
the advent of electronic trading, however, the volume of that
trade increases exponentially, since traders can now trade more
at higher speeds. The connection is thus accelerating. Apart from
this acceleration, however, as the world becomes more financially
integrated, the intensified trading network between London and
New York may expand and stretch to cover more and more cities.
After China committed itself to the global economy in the 1980s,
for example, Shanghai steadily returned to its old role as a major
trading post.
It is not only in financial matters that you can find these
connections. In 2012, when the monsoon rains flooded much of
Bangkok, the Honda plant making some of the critical car parts
temporarily ceased production. This had a strong negative effect
on Honda-USA which relied heavily on the parts being imported
from Thailand. Not only was it unable to reach the sales targets
it laid out, but the ability of the service centers nationwide to
assist Honda owners also suffered. As a result, the Japanese car
company’s global profits also fell.*
The final attribute of this definition relates to the way people
perceive time and space. Steger notes that “globalization processes
do not occur mers
involve the subjec
words, people beg
place and distance
mouse-click away.
and get a reply ins
their distance as le
22. also exposed one t
this greater sense
Steger posits
differentiated witl
represents the ms
intensification of
belief among po
economic marke
freedom and den
forwarded in mec
realize why it is pi
For now, wh
journalists critic
not, criticizing s
criticisms are wa
“globalization” a
cannot simply be
been integrated.
Conclusion:
the Ground
All this talk:
Indeed, it may b
because it is sO
therefore, found
a whole. Instead
instead of just or
What is Globalization? | 9
do not occur merely at an objective, material level but they also
involve the subjective plane of human consciousness.” In other
words, people begin to feel that the world has become a smaller
place and distance has collapsed from thousands of miles to just a
mouse-click away. One can now e-mail a friend in another country
and get a reply instantaneously, and as a result, begins to perceive
their distance as less consequential. Cable TV and the internet has
also exposed one to news from across the globe, so now, he/she has
this greater sense of what is happening in other places.
23. Steger posits that his definition of globalization must be
differentiated with an ideology he calls globalism. If globalization
represents the many processes that allow for the expansion and
intensification of global connections, globalism is a widespread
belief among powerful people that the global integration of
economic markets is beneficial for everyone, since it spreads
freedom and democracy across the world.®It is a common belief
forwarded in media and policy circles. In the next lesson, you will
realize why it is problematic.
For now, what is crucial to note is that when activists and
journalists criticize “globalization,” they are, more often than
not, criticizing some manifestations of globalism. Often, these
criticisms are warranted. Nevertheless, it is crucial to insist that
“globalization” as a process refers to a larger phenomenon that
cannot simply be reduced to the ways in which global markets have
been integrated.
Conclusion: Globalization from
the Ground Up
All this talk of large, intersecting processes may be confusing.
Indeed, it may be hard to assess globalization or comment on it
because it is so diffuse and almost fleeting. Some scholars have,
therefore, found it simpler to avoid talking about globalization as
a whole. Instead, they want to discuss “multiple globalizations,”
instead of just one process.
10 | The Structures of Globalization
For anthropologist Arjun Appadurai, different kinds of
globalization occur on multiple and intersecting dimensions of
integration that he calls “scapes.” An “ethnoscape,” for example,
refers to the global movement of people, while a “mediascape” is
about the flow of culture. A “technoscape” refers to the circulation
of mechanical goods and software; a “financescape” denotes
the global circulation of money; and an “ideoscape” is the realm
where political ideas move around. Although they intersect,
these various scapes have differing logics. They are thus distinct
windows into the broader phenomenon of globalization.
Appadurai’s argument is simple: there are multiple
globalizations. Hence, even if one does not agree that globalization
24. can be divided into the five “scapes,” it is hard to deny Appadurai’s
central thrust of viewing globalization through various lenses.
Depending on what is being globalized, a different dynamic
(or dynamics) may emerge. So while it is important to ask “What
is globalization?” it is likewise important to ask “What is/are being
globalized?” Depending on what is being globalized, the vista and
conclusions change.
The structure of the lessons that follow will reflect this
multidimensional understanding of globalization. Each of the
lessons will focus on a particular kind of globalization. Every one
of them will be about different networks and connections that are
expanding and intensifying in the contemporary world.
Treat each lesson not as an end in itself but as window to the
broader phenomenon of globalization.
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What is Globalization? | 11
5 iief
26. globalization” as a historical process representing the result of
human innovation and technological progress. It is characterized
by the increasing integration of economies around the world
through the movement of goods, services, and capital across
borders. These changes are the products of people, organizations,
institutions, and technologies.” As with all other processes of
globalization, there is a qualitative and subjective element to this
definition. How does one define “increasing integration”? When
is it considered that trade has increased? Is there a particular
threshold?
Even while the IMF and ordinary people grapple with the
difficulty of arriving at precise definitions of globalization,
they usually agree that a drastic economic change is occurring
throughout the world. According to the IMF, the value of trade
(goods and services) as a percentage of world GDP increased
from 42.1 percent in 1980 to 62.1 percent in 2007.% Increased
trade also means that investments are moving all over the world
at faster speeds. According to the United Nations Conference on
Trade and Developme
investments flowing :
By 2015, that number
dramatic increase in §
It has happened not ex
Apart from the
also note the increa:
days, supercomputer
and sales between di
a process called high-
and traded are chang
or music indicates a
“book” can be digita
and a music “album”
purchase and downlo
This lesson aims
about. It will also as
who benefits from it :
International T
27. International tra
international trade
pathways in the anci
now the Middle Eas
one of the most pro!
was silk, which was |
the Middle East as
used the Silk Road
Han dynasty opene
Ottoman Empire clo
However, while
truly “global” becau
American continen
The Globalization of World Economics | 13
Trade and Development (UNCTAD), the amount of foreign direct
investments flowing across the world was US$ 57 billion in 1982.
By 2015, that number was $1.76 trillion.” These figures represent a
dramatic increase in global trade in the span of just a few decades.
It has happened not even after one human lifespan!
Apart from the sheer magnitude of commerce, we should
also note the increased speed and frequency of trading. These
days, supercomputers can execute millions of stock purchases
and sales between different cities in a matter of seconds through
a process called high-frequency trading. Even the items being sold
and traded are changing drastically. Ten years ago, buying books
or music indicates acquiring physical items. Today, however, a
“book” can be digitally downloaded to be read with an e-reader,
and a music “album” refers to the 15 songs on mp3 format you can
purchase and download from iTunes.
This lesson aims to trace how economic globalization came
about. It will also assess this globalization system, and examine
who benefits from it and who is left out.
International Trading Systems
International trading systems are not new. The oldest known
international trade route was the Silk Road—a network of
pathways in the ancient world that spanned from China to what is
28. now the Middle East and to Europe. It was called as such because
one of the most profitable products traded through this network
was silk, which was highly prized especially in the area that is now
the Middle East as well as in the West (today’s Europe). Traders
used the Silk Road regularly from 130 BCE when the Chinese
Han dynasty opened trade to the West until 1453 BCE when the
Ottoman Empire closed it.
However, while the Silk Road was international, it was not
truly “global” because it had no ocean routes that could reach the
American continent. So when did full economic globalization
4 | The Structures of Globalization
begin? According to historians Dennis O. Flynn and Arturo
Giraldez, the age of globalization began when “all important
populated continents began to exchange products continuously—
both with each other directly and indirectly via other continents—
and in values sufficient to generate crucial impacts on all trading
partners.” Flynn and Giraldez trace this back to 1571 with the
establishment of the galleon trade that connected Manila in the
Philippines and Acapulco in Mexico." This was the first time that
the Americas were directly connected to Asian trading routes. For
Filipinos, it is crucial to note that economic globalization began on
the country’s shores.
The galleon trade was part of the age of mercantilism. From
the 16th century to the 18th century, countries, primarily in
Europe, competed with one another to sell more goods as a means
to boost their country’s income (called monetary reserves later on).
To defend their products from competitors who sold goods more
cheaply, these regimes (mainly monarchies) imposed high tariffs,
forbade colonies to trade with other nations, restricted trade
routes, and subsidized its exports. Mercantilism was thus also a
system of global trade with multiple restrictions.
A more open trade system emerged in 1867 when, following
the lead of the United Kingdom, the United States and other
European nations adopted the gold standard at an international
monetary conference in Paris. Broadly, its goal was to create a
common system that would allow for more efficient trade and
prevent the isolationism of the mercantilist era. The countries
thus established a common basis for currency prices and a fixed
29. exchange rate system—all based on the value of gold.
Despite facilitating simpler trade, the gold standard was
still a very restrictive system, as it compelled countries to back
their currencies with fixed gold reserves. During World War I,
when countries depleted their gold reserves to fund their armies,
many were forced to abandon the gold standard. Since European
countries had low gold reserves, they adopted floating currencies
that were no longer redeemable in gold.
lhe gold standard, though
Returning to a
the global economi
during the 1920s an
government coffers
recession ever exper
argued that it was
limited the amount
demand and const
money that was equ
increase the money
Economic hist
recovery of the Unit
the gold standard, tl
spend on reviving t
other major industr
Though more i
until as late as the
standard of the ea
operates based on y
are not backed by |
by their cost relat
governments to fri
increasing or decr
they see fit.
The Globalization of World Economics | 15
lhe gold standard, though once common, has proven to be a very restrictive form of
globalizing trade.
30. Returning to a pure standard became more difficult as
the global economic crisis called the Great Depression started
during the 1920s and extended up to the 1930s, further emptying
government coffers. This depression was the worst and longest
recession ever experienced by the Western world. Some economists
argued that it was largely caused by the gold standard, since it
limited the amount of circulating money and, therefore, reduced
demand and consumption. If governments could only spend
money that was equivalent to gold, its capacity to print money and
increase the money supply was severely curtailed.
Economic historian Barry Eichengreen argues that the
recovery of the United States really began when, having abandoned
the gold standard, the US government was able to free up money to
spend on reviving the economy." At the height of World War II,
other major industrialized countries followed suit.
Though more indirect versions of the gold standard were used
until as late as the 1970s, the world never returned to the gold
standard of the early 20th century. Today, the world economy
operates based on what are called fiat currencies—currencies that
are not backed by precious metals and whose value is determined
by their cost relative to other currencies. This system allows
governments to freely and actively manage their economies by
increasing or decreasing the amount of money in circulation as
they see fit.
18 | The Structures of Globalization
affected the Western economies that were reliant on oil."®
To make matters worse, the stock markets crashed in 1973-
1974 after the United States stopped linking the dollar to gold,
effectively ending the Bretton Woods system. The result
was a phenomenon that Keynesian economics could not have
predicted—a phenomenon called stagflation, in which a decline
in economic growth and employment (stagnation) takes place
alongside a sharp increase in prices (inflation).
Around this time, a new form of economic thinking was
beginning to challenge the Keynesian orthodoxy. Economists
such as Friedrich Hayek and Milton Friedman argued that the
31. governments’ practice of pouring money into their economies
had caused inflation by increasing demand for goods without
necessarily increasing supply. More profoundly, they argued
that government intervention in economies distort the proper
functioning of the market.
Economists like Friedman used the economic turmoil to
challenge the consensus around Keynes's ideas. What emerged was
a new form of economic thinking that critics labeled neoliberalism.
From the 1980s onward, neoliberalism became the codified
strategy of the United States Treasury Department, the World
Bank, the IMF, and eventually the World Trade Organization
(WTO)—a new organization founded in 1995 to continue the tariff
reduction under the GATT. The policies they forwarded came to
be called the Washington Consensus.
The Washington Consensus dominated global economic
policies from the 1980s until the early 2000s. Its advocates pushed
for minimal government spending to reduce government debt.
They also called for the privatization of government-controlled
services like water, power, communications, and Itransport,
believing that the free market can produce the best results. Finally,
they pressured governments, particularly in the developing world,
to reduce tariffs and open up their economies, arguing that it is the
quickest way to progress. Advocates of the Washington Consensus
conceded that, along the way, certain industries would be affected
and die, but they considered this “shock therapy” necessary for
long-term economic growth.
The appeal of neol
like US President Rc
Margaret Thatcher
spending by compa
Thatcher, in particula
who reined in overspe:
The problem with
are not households. Fi
households cannot. 1
governments provide
them to pay and refin:
Despite the init
32. Thatcher and Reagar
became immediately
post-communist Rus
the 1990s, the IMF c
government industrie
free these industries
to the more dynami
happened, however, v
accumulated wealth 1
money to purchase tl
elites relied on easy :
industries. This pra
dominates the Russia
The Global Fin
to Neoliberalis
Russia’s case was
of neoliberalism did
¢conomists who bel
recent repudiation of
Crisis of 2008-2009.
The Globalization of World Economics | 19
oil. The appeal of neoliberalism was in its simplicity. Its advocates
1973 like US President Ronald Reagan and British Prime Minister
gold, Margaret Thatcher justified their reduction in government
result spending by comparing national economies to households.
have Thatcher, in particular, promoted an image of herself as a mother,
ecline | who reined in overspending to reduce the national debt.
id The problem with the household analogy is that governments
are not households. For one, governments can print money, while
Rs 8 households cannot. Moreover, the constant taxation systems of
mists governments provide them a steady flow of income that allows
fie : them to pay and refinance debts steadily.
1 i Despite the initial success of neoliberal politicians like
ged Thatcher and Reagan, the defects of the Washington Consensus
foper became immediately palpable. A good early example is that of
post-communist Russia. After Communism had collapsed in
: the 1990s, the IMF called for the immediate privatization of all
il to | government industries. The IMF assumed that such a move would
d was free these industries from corrupt bureaucrats and pass them on
lism. to the more dynamic and independent private investors. What
33. lified happened, however, was that only individuals and groups who had
Vorld | accumulated wealth under the previous communist order had the
ation money to purchase these industries. In some cases, the economic
tariff clites relied on easy access to government funds to take over the
ne to industries. This practice has entrenched an oligarchy that still
dominates the Russian economy to this very day.
omic
shed
dis The Global Financial Crisis and the Challenge
olled to Neoliberalism
port,
ally, Russia's case was just one example of how the “shock therapy”
orld, of neoliberalism did not lead to the ideal outcomes predicted by
s the economists who believed in perfectly free markets. The greatest
nsus recent repudiation of this thinking was the recent global financial
ced Crisis of 2008-2009.
y for
| The Structures of Globalization
Neoliberalism came under significant strain during the
global financial crisis of 2007-2008 when the world experienced
the greatest economic downturn since the Great Depression.
The crisis can be traced back to the 1980s when the United
States systematically removed various banking and investment
restrictions.
The scaling back of regulations continued until the 2000s,
paving the way for a brewing crisis. In their attempt to promote
the free market, government authorities failed to regulate
bad investments occurring in the US housing market. Taking
advantage of “cheap housing loans,” Americans began building
houses that were beyond their financial capacities.
To mitigate the risk of these loans, banks that were lending
houseowners’ money pooled these mortgage payments and sold
them as “mortgage-backed securities” (MBSs). One MBS would be
a combination of multiple mortgages that they assumed would pay
a steady rate.
34. Since there was so much surplus money circulating, the
demand for MBSs increased as investors clamored for more
investment opportunities. In their haste to issue these loans,
however, the banks became less discriminating. They began
extending loans to families and individuals with dubious credit
records—people who were unlikely to pay their loans back. These
high-risk mortgages became known as sub-prime mortgages.
Financial experts wrongly assumed that, even if many of the
borrowers were individuals and families who would struggle to
pay, a majority would not default. Moreover, banks thought that
since there were so many mortgages in just one MBS, a few failures
would not ruin the entirety of the investment.
Banks also assumed that housing prices would continue to
increase. Therefore, even if homeowners defaulted on their loans,
these banks could simply reacquire the homes and sell them at a
higher price, turning a profit.
Sometime in 2007, however, home prices stopped increasing
as supply caught up with demand. Moreover, it slowly became
apparent that families
realization triggered th
investors tried to get rid
cycle reached a tipping
investment banks like
depleting major investm
The crisis spread
investors were foreign g
The loss of their money
These series of inter
effect that sent ripples
banks heavily depende
them, they failed to refi
crunch, three of Icelan
2007 to 2008, Iceland’s
Until now, count
indebted (almost like
35. has come at a high pri
by Germany and the
spending. Affecting ser
forms of social securit
the poor. Moreover, tl
slowed down growth ar
The United States
large Keynesian-style
Obama pushed for in I
be said for many ott
economic crisis has s|
right parties like Mar
risen to prominence |
woes, claiming that tl
movements blend po
racism. We will discus:
The Globalization of World Economics bo
g the apparent that families could not pay off their loans. This
enced realization triggered the rapid reselling of MBSs, as banks and
ssion. investors tried to get rid of their bad investments. This dangerous
Inited cycle reached a tipping point in September 2008, when major
tment investment banks like Lehman Brothers collapsed, thereby
depleting major investments.
000s, The crisis spread beyond the United States since many
mote investors were foreign governments, corporations, and individuals.
sulate The loss of their money spread like wildfire back to their countries.
aking These series of interconnections allowed for a global multiplier
ling effect that sent ripples across the world. For example, Iceland’s
banks heavily depended on foreign capital, so when the crisis hit
1ding them, they failed to refinance their loans. As a result of this credit
| sold crunch, three of Iceland’s top commercial banks defaulted. From
1d be 2007 to 2008, Iceland’s debt increased more than seven-fold.
d pay Until now, countries like Spain and Greece are heavily
indebted (almost like Third World countries), and debt relief
thie has come at a high price. Greece, in particular, has been forced
more by Germany and the IMF to cut back on its social and public
Dans, spending. Affecting services like pensions, health care, and various
egan forms of social security, these cuts have been felt most acutely by
redit the poor. Moreover, the reduction in government spending has
‘hese slowed down growth and ensured high levels of unemployment.
The United States recovered relatively quickly thanks to a
36. f the large Keynesian-style stimulus package that President Barack
le to Obama pushed for in his first months in office. The same cannot
that be said for many other countries. In Europe, the continuing
lures economic crisis has sparked a political upheaval. Recently, far-
right parties like Marine Le Pen’s Front National in France have
risen to prominence by unfairly blaming immigrants for their
le to
aia woes, claiming that they steal jobs and leech off welfare. These
ha movements blend popular resentment with utter hatred and
racism. We will discuss their rise further in the final lesson.
sing
ame
22 | The Structures of Globalization
Economic Globalization Today
The global financial crisis will take decades to resolve. The
solutions proposed by certain nationalist and leftist groups of
closing national economies to world trade, however, will no longer
work. The world has become too integrated. Whatever one’s
opinion about the Washington Consensus is, it is undeniable that
some form of international trade remains essential for countries to
develop in the contemporary world.
Exports, not just the local selling of goods and services,
make national economies grow at present. In the past, those that
benefited the most from free trade were the advanced nations
that were producing and selling industrial and agricultural
goods. The United States, Japan, and the member-countries of
the European Union were responsible for 65 percent of global
exports, while the developing countries only accounted for
29 percent. When more countries opened up their economies
to take advantage of increased free trade, the shares of the
percentage began to change. By 2011, developing countries like the
Philippines, India, China, Argentina, and Brazil accounted for 51
percent of global exports while the share of advanced nations—
37. including the United States—had gone down to 45 percent!
The WTO-led reduction of trade barriers, known as trade
liberalization, has profoundly altered the dynamics of the global
economy.
In the recent decades, partly as a result of these increased
exports, economic globalization has ushered in an unprecedented
spike in global growth rates. According to the IMF, the global
per capita GDP rose over five-fold in the second half of the 20th
century. It was this growth that created the large Asian economies
like Japan, China, Korea, Hong Kong, and Singapore.'°
And yet, economic globalization remains an uneven process,
with some countries, corporations, and individuals benefiting a lot
more than others. The series of trade talks under the WTO have
led to unprecedent
but these processes
First, develops
repeatedly refuse
products that coul
the developing wo
Japan’s determine
to protect its farm
“sacred.” Ultimate
economy that allo
sector.
The United St
forcing consumer
prices instead of g
America.
Faced with
powerful countrig
to make econom
therefore, charact
developing countr
The benefici
transnational cc
38. And like any otl
with profits tha
governments hos
laws, which prev
and environmen
members of their
to countries’ lo
protection of wor
high profit mar;
weaken environ:
consequences on
their finite resour
The Globalization of World Economics | 23
led to unprecedented reductions in tariffs and other trade barriers,
but these processes have often been unfair.
First, developed countries are often protectionists, as they
repeatedly refuse to lift policies that safeguard their primary
products that could otherwise be overwhelmed by imports from
the developing world. The best example of this double standard is
Japan’s determined refusal to allow rice imports into the country
to protect its farming sector. Japan's justification is that rice is
“sacred.” Ultimately, it is its economic muscle as the third largest
economy that allows it to resist pressures to open its agricultural
sector.
The United States likewise fiercely protects its sugar industry,
forcing consumers and sugar-dependent businesses to pay higher
prices instead of getting cheaper sugar from plantations of Central
America.
Faced with these blatantly protectionist measures from
powerful countries and blocs, poorer countries can do very little
to make economic globalization more just. Trade imbalances,
therefore, characterize economic relations between developed and
developing countries.
The beneficiaries of global commerce have been mainly
transnational corporations (TNCs) and not governments.
And like any other business, these TNCs are concerned more
with profits than with assisting the social programs of the
governments hosting them. Host countries, in turn, loosen tax
39. laws, which prevents wages from rising, while sacrificing social
and environmental programs that protect the underprivileged
members of their societies. The term “race to the bottom” refers
to countries’ lowering their labor standards, including the
protection of workers’ interests, to lure in foreign investors seeking
high profit margins at the lowest cost possible. Governments
S, | weaken environmental laws to attract investors, creating fatal
ot consequences on their ecological balance and depleting them of
ve their finite resources (like oil, coal, and minerals).
24 | The Structures of Globalization
Localizing the Material
Many Philippine industries were devastated by unfair trade
deals under the GATT and eventually the WTO. One sector that
was particularly affected was Philippine agriculture. According to
Walden Bello and a team of researchers at Focus on the Global
South, the US used its power under the GATT system to prevent
Philippine importers from purchasing Philippine poultry and
pork—even as it sold meat to the Philippines.
Although the Philippines expected to make up losses in
sectors like meat with gains in areas such as coconut products,
no significant change was realized. In 1993, coconut exports
amounted to $1.9 billion, and after a slight increase to $2.3 billion
in 1997, it returned to $1.9 billion in 2000.
Most strikingly, Bello and company noted that the Philippines
became a net food importer under the GATT. In 1993, the country
had an agricultural trade surplus of $292 million. It had a deficit of
$764 million in 1997 and $794 million in 2002.
- Bello, Walden, Herbert Docena, Marissa de Guzman, and Mary Lou Malig.
The Anti-Development State: The Political Economy of Permanent Crisis in the
Philippines. London and New York: Zed Books, 2006, 140~142.
Conclusion
Given the stak
perennially import:
just. Although som
40. back, policies cann
policymakers, ther
trading deals faire:
ways of cushionin
globalization, while
Phe
(?) Guide Qu
1 How do econ
2. Howisthe Ph
3. Compare and
~ system with
LI)
“¥ Learning
Global E
With the help
trip to and famil
International economic integration is a central tenet of
globalization. In fact, it is so crucial to the process that many
writers and commentators confuse this integration for the entirety
of globalization. As a reminder, economics is just one window into
the phenomenon of globalization; it is not the entire thing.
organization (Asi
company (Honda,
as you can during 1
If this activit
accomplish these
of the institution
connections it has
of this institution
interconnections.
Nevertheless, much of globalization is anchored on changes
in the economy. Global culture, for example, is facilitated by
trade. Filipinos would not be as aware of American culture if
41. not for the trade that allows locals to watch American movies,
listen to American music, and consume American products. The
globalization of politics is likewise largely contingent on trade
relations. These days, many events of foreign affairs are conducted
to cement trading relations between and among states.
Then answer t
global economic |
Philippines?
The Globalization of World Economics | 25
Given the stakes involved in economic globalization, it is
trade perennially important to ask how this system can be made more
or that just. Although some elements of global free trade can be scaled
ling to back, policies cannot do away with it as a whole. International
Global policymakers, therefore, should strive to think of ways to make
revent trading deals fairer. Governments must also continue to devise
y and ways of cushioning the most damaging effects of economic
globalization, while ensuring that its benefits accrue for everyone.
ses in pre sme EE
ducts (?) Guide Questions
ithe he .
billion 1 How do. economic forces facilitate the deepening of globalization?
( he Philippines central to the history of economic globalization? |
pines 3 Compare and contrast the assumptions of the original Bretton Woods 1
untry ~ system with those of the Washington Consensus.
icit of el
| Malig. 9%
in the %Y Learning Activity:
Global Economic Institutions
With the help of the school administration, organize a school
trip to and familiarization tour of an international economic
net of organization (Asian Development Bank) or an international
many company (Honda, McDonald's, etc.). Gather as much information
ntirety as you can during the tour.
Are If this activity cannot be arranged, go to the web and
accomplish these tasks: (a) research the origins and history
1anges of the institution you have chosen; (b) map the international
fed by connections it has created; (c) identify the major country-leaders
ture if of this institution; and (d) locate the Philippines in this map of
10vies, interconnections.
43. relations as a facet of globalization, because states/governments
A Histor
are key drivers of global
internationalization as |
politics. Although this
we cannot avoid histor
is largely defined by e
years ago. Don’t worry;
world politics. But to d
This lesson will begin
contemporary global pe
this system emerge? In «
to understand the maja
lesson.
The Attributes of
World politics toda
countries or states that
Second, these countr
diplomacy. Third, ther
United Nations (UN),
beyond simply facilitati
organizations also take
apart from being a mee
of state, also has task
Organization (WHO) a
(1LO).
What are the orig
unpacking what one m
academics also call the
as it seems. The nation
in human history, and
as countries. At differe
in various regions of t
units as small as their
they see themselves as
'‘Christendom” (the ent
A History of Global Politics: Creating an International Order bi27
44. are key drivers of global processes. In this lesson, we will examine
internationalization as one window to view the globalization of
politics. Although this course is about the contemporary world,
we cannot avoid history. What international relations are today
is largely defined by events that occurred as far back as 400
years ago. Don’t worry; we will eventually discuss contemporary
world politics. But to do that, we need first to work backward.
This lesson will begin with identifying the major attributes of
contemporary global politics and then proceed to ask: How did
this system emerge? In doing so, you will have a solid foundation
to understand the major issues of global governance in the next
lesson.
The Attributes of Today's Global System
World politics today has four key attributes. First, there are
countries or states that are independent and govern themselves.
Second, these countries interact with each other through
diplomacy. Third, there are international organizations, like the
United Nations (UN), that facilitate these interactions. Fourth,
beyond simply facilitating meetings between states, international
organizations also take on lives of their own. The UN, for example,
apart from being a meeting ground for presidents and other heads
of state, also has task-specific agencies like the World Health
Organization (WHO) and the International Labour Organization
(1LO).
What are the origins of this system? A good start is by
unpacking what one means when he/she says a “country,” or what
academics also call the nation-state. This concept is not as simple
as it seems. The nation-state is a relatively modern phenomenon
in human history, and people did not always organize themselves
1s countries. At different parts in the history of humanity, people
in various regions of the world have identified exclusively with
units as small as their village or their tribe, and at other times,
they see themselves as members of larger political categories like
“Christendom” (the entire Christian world).
28 | The Structures of Globalization
The nation-state is composed of two non-interchangeable
terms. Not all states are nations and not all nations are states. The
45. nation of Scotland, for example, has its own flag and national
culture, but still belongs to a state called the United Kingdom.
Closer to home, many commentators believe that the Bangsamoro
is a separate nation existing within the Philippines but, through
their elites, recognizes the authority of the Philippine state.
Meanwhile, if there are states with multiple nations, there are also
single nations with multiple states. The nation of Korea is divided
into North and South Korea, whereas the “Chinese nation” may
refer to both the People’s Republic of China (the mainland) and
Taiwan.
What then is the difference between nation and state?
In layman’s terms, state refers to a country and its government,
ie. the government of the Philippines. A state has four attributes.
First, it exercises authority over a specific population, called its
citizens. Second, it governs a specific territory, Third, a state has
a structure of government that crafts various rules that people
(society) follow. Fourth and the most
L crucial, the state has
sovereignty over its territory. Sovereignty here refers to internal and
external authority. Internall
¥> no individuals or groups can operate
in a given national territory by ignoring the state, This means that
groups like churches, civil society organizations, corporations,
and other entities have to follow the laws of the state where they
establish their parishes, offices, or headquarters. Externally,
sovereignty means that a state’s policies and procedures are
independent of the interventions of other states. Russia or China,
for example, cannot pass laws for the Philippines and vice versa.
On the other hand, the nation, according to Benedict
Anderson, is an “imagined community.” It is limited because
it does not go beyond a given “official boundary,”
rights and responsibilities are m
of the citizens of that nation.”
nation has its boundaries. This characteristic is in stark contrast
46. to many religious imagined communities. Anyone, for exa mple,
can become a Catholic if one chooses to. In fact, (
and because
ainly the privilege and concern
Being limited means that the
satholics want
more people to joi
to discipleship. Bu
An American can
“convert” into a Ph
to people who have
language, and live i
Calling it “ima
up. Rather, the n:
community of peo
in his/her lifetime.
Olympics, for exan
athlete. Rather, you
the same Filipino ci
Philippine archipel
people living in it a.
become states. Nati
when that national
authority and powe
Moreover, if there ¢
seek some form of
is why, for example
the state of Canad:
French-speaking ar
their citizens). It is :
of the United Kingc
by the Scottish Nati
Nation and stat
that facilitates state
era, it has been the
the creation of na
sovereign because c
independence.
47. Sovereignty is,
modern state politi
entails going back as
more people to join their community; they refer to it as the call
to discipleship. But not everyone can simply become a Filipino.
An American cannot simply go to the Philippine Embassy and
“convert” into a Philippine citizen. Nations often limit themselves
to people who have imbibed a particular culture, speak a common
language, and live in a specific territory.
Calling it “imagined” does not mean that the nation is made-
up. Rather, the nation allows one to feel a connection with a
community of people even if he/she will never meet all of them
in his/her lifetime. When you cheer for a Filipino athlete in the
Olympics, for example, it is not because you personally know that
athlete. Rather, you imagine your connection as both members of
the same Filipino community. In a given national territory like the
Philippine archipelago, you rest in the comfort that the majority of
people living in it are also Fillipinos. Finally, most nations strive to
become states. Nation-builders can only feel a sense of fulfillment
when that national ideal assumes an organizational form whose
authority and power are recognized and accepted by “the people.”
Moreover, if there are communities that are not states, they often
seek some form of autonomy within their “mother states.” This
is why, for example, the nation of Quebec, though belonging to
the state of Canada, has different laws about language (they are
French-speaking and require French language competencies for
their citizens). It is also for this reason that Scotland, though part
of the United Kingdom, has a strong independence movement led
by the Scottish Nationalist Party.
Nation and state are closely related because it is nationalism
that facilitates state formation. In the modern and contemporary
era, it has been the nationalist movements that have allowed for
the creation of nation-states. States become independent and
sovereign because of nationalist sentiment that clamors for this
independence.
Sovereignty is, thus, one of the fundamental principles of
modern state politics. Understanding how this became the case
entails going back as far as 400 years ago.
48. A History of Global Politics: Creating an International Order | 29
30 | The Structures of Globalization
The Interstate System
The origins of the present-day concept of sovereignty can
be traced back to the Treaty of Westphalia, which was a set of
agreements signed in 1648 to end the Thirty Years’ War between
the major continental powers of Europe. After a brutal religious
war between Catholics and Protestants, the Holy Roman Empire,
Spain, France, Sweden, and the Dutch Republic designed a system
that would avert wars in the future by recognizing that the treaty
signers exercise complete control over their domestic affairs and
swear not to meddle in each other’s affairs.
The Westphalian system provided stability for the nations
of Europe, until it faced its first major challenge by Napoleon
Bonaparte. Bonaparte believed in spreading the principles of the
French Revolution—liberty, equality, and fraternity—to the rest
of Europe and thus challenged the power of kings, nobility, and
religion in Europe. The Napoleonic Wars lasted from 1803-1815
with Napoleon and his armies marching all over much of Europe.
In every country they conquered, the French implemented the
Napoleonic Code that forbade birth privileges, encouraged freedom
or religion, and promoted meritocracy in government service. This
system shocked the monarchies and the hereditary elites (dukes,
duchesses, etc.) of Europe, and they mustered their armies to push
back against the French emperor.
Anglo and Prussian armies finally defeated Napoleon in
the Battle of Waterloo in 1815, ending the latter’s mission to
spread his liberal code across Europe. To prevent another war
and to keep their systems of privilege, the royal powers created a
new system that, in effect, restored the Westphalian system. The
Concert of Europe was an alliance of “great powers” —the United
Kingdom, Austria, Russia, and Prussia—that sought to restore
the world of monarchical, hereditary, and religious privileges of
the time before the French Revolution and the Napoleonic Wars.
More importantly, it was an alliance that sought to restore the
sovereignty of states. Under this Metternich system (named after
the Austrian diplomat, Klemens von Metternich, who was the
49. A His
system’s main architec
from 1815 to 1914, at tl
Klemens Von Mett
Despite the challs
and the eventual col
War I, present-day i
history. Until now, stz
attempts to violentl
countries are frowne
‘reat powers” still h
lor example, the mo:
( .ouncil, has a core
powers over the coun
Internationals
The Westphalia:
into separate, sover
interstate system, the
reignty can
vas a set of
‘ar between
al religious
an Empire,
ed a system
t the treaty
affairs and
he nations
~ Napoleon
iples of the
to the rest
bility, and
1803-1815
of Europe.
nented the
d freedom
rvice. This
50. tes (dukes,
ies to push
poleon in
nission to
other war
created a
stem. The
he United
to restore
vileges of
nic Wars.
estore the
med after
) was the
A History of Global Politics: Creating an International Order | 31
system’s main architect), the Concert’s power and authority lasted
from 1815 to 1914, at the dawn of World War I.
Klemens Von Metternich was the architect of the “Concert of Europe.”
Despite the challenge of Napoleon to the Westphalian system
and the eventual collapse of the Concert of Europe after World
War I, present-day international system still has traces of this
history. Until now, states are considered sovereign, and Napoleonic
attempts to violently impose systems of government in other
countries are frowned upon. Moreover, like the Concert system,
“reat powers” still hold significant influence over world politics.
lor example, the most powerful grouping in the UN, the Security
Council, has a core of five permanent members, all having veto
powers over the council’s decision-making process.
Internationalism
The Westphalian and Concert systems divided the world
into separate, sovereign entities. Since the existence of this
interstate system, there have been attempts to transcend it. Some,
32 | The Structures of Globalization
like Bonaparte, directly challenged the system by infringing on
51. other states’ sovereignty, while others sought to imagine other
systems of governance that go beyond, but do not necessarily
challenge, sovereignty. Still, others imagine a system of heightened
interaction between various sovereign states, particularly the
desire for greater cooperation and unity among states and peoples.
This desire is called internationalism.
Internationalism comes in different forms, but the principle
may be divided into two broad categories: liberal internationalism
and socialist internationalism.
The first major thinker of liberal internationalism was the late
18th century German philosopher Immanuel Kant. Kant likened
states in a global system to people living in a given territory. If
people living together require a government to prevent lawlessness,
shouldn’t that same principle be applied to states? Without a form
of world government, he argued, the international system would
be chaotic. Therefore, states, like citizens of countries, must give
up some freedoms and “establish a continuously growing state
consisting of various nations which will ultimately include the
nations of the world.” In short, Kant imagined a form of global
government.
Writing in the late 18th century as well, British philosopher
Jeremy Bentham (who coined the word “international” in 1780),
advocated the creation of “international law” that would govern
the inter-state relations. Bentham believed that objective global
legislators should aim to propose legislation that would create “the
greatest happiness of all nations taken together.”
To many, these proposals for global government and
international law seemed to represent challenges to states. Would
not a world government, in effect, become supreme? And would
not its laws overwhelm the sovereignty of individual states?
The first thinker to reconcile nationalism with liberal
internationalism was the 19th century Italian patriot Giuseppe
Mazzini. Mazzini was both an advocate of the unification of the
various Italian-speaking mini-states and a major critic of the
A Hi
52. Metternich system.
(without kings, queen
system of free nations
international system.
be the basis of an eq
He argued that if the
could scale up the sys
Europe. Mazzini was
that free, unified n
cooperation.
Mazzini influenc
(1913-1921) Woodrc
century’s most prom
saw nationalism as :
of his faith in natio
determination—the t
free, and sovereign g
would become demc
they be able to build
on international law
most notable advoca
At the end of Worl
League into a venue
another war. For his
Prize in 1919.
American Presic
advoca
TN I
A History of Global Politics: Creating an International Order
Metternich system. He believed in a Republican government
(without kings, queens, and hereditary succession) and proposed a
system of free nations that cooperated with each other to create an
international system. For Mazzini, free, independent states would
be the basis of an equally free, cooperative international system.
He argued that if the various Italian mini-states could unify, one
could scale up the system to create, for example, a United States of
53. Europe. Mazzini was a nationalist internationalist, who believes
that free, unified nation-states should be the basis of global
cooperation.
Mazzini influenced the thinking of United States president
(1913-1921) Woodrow Wilson, who became one of the 20th
century’s most prominent internationalist. Like Mazzini, Wilson
saw nationalism as a prerequisite for internationalism. Because
of his faith in nationalism, he forwarded the principle of self-
determination—the belief that the world’s nations had a right to a
free, and sovereign government. He hoped that these free nations
would become democracies, because only by being such would
they be able to build a free system of international relations based
on international law and cooperation. Wilson, in short, became the
most notable advocate for the creation of the League of Nations.
At the end of World War I in 1918, he pushed to transform the
League into a venue for conciliation and arbitration to prevent
another war. For his efforts, Wilson was awarded the Nobel Peace
Prize in 1919.
American President Woodrow Wilson became the most prominent
advocate for the creation of the League of Nations.
33
34 | The Structures of Globalization
The League came into being that same year. Ironically and
unfortunately for Wilson, the United States was not able to join
the organization due to strong opposition from the Senate. The
League was also unable to hinder another war from breaking out.
It was practically helpless to prevent the onset and intensification
of World War II. On one side of the war were the Axis Powers—
Hitler's Germany, Mussolini’s Italy, and Hirohito’s Japan—
who were ultra-nationalists that had an instinctive disdain
for internationalism and preferred to violently impose their
dominance over other nations. It was in the midst of this war
between the Axis Powers and the Allied Powers (composed of the
United States, United Kingdom, France, Holland, and Belgium)
that internationalism would be eclipsed.
Despite its failure, the League gave birth to some of the more
task-specific international organizations that are still around
54. until today, the most popular of which are the World Health
Organization (WHO) and the International Labour Organization
(ILO). More importantly, it would serve as the blueprint for
future forms of international cooperation. In this respect, despite
its organizational dissolution, the League of Nations principles
survived World War II.
The League was the concretization of the concepts of liberal
internationalism. From Kant, it emphasized the need to form
common international principles. From Mazzini, it enshrined the
principles of cooperation and respect among nation-states. From
Wilson, it called for democracy and self-determination. These
ideas would re-assert themselves in the creation of the United
Nations in 1946 (see next lesson).
One of Mazzini’s biggest critics was German socialist
philosopher Karl Marx who was also an internationalist, but who
differed from the former because he did not believe in nationalism.
He believed that any true form of internationalism should
deliberately reject nationalism, which rooted people in domestic
concerns instead of global ones. Instead, Marx placed a premium
on economic equality; he did not divide the world into countries,
A Hi
but into classes. The
factories, companies, :
the proletariat class i
production, but instea
Marx and his co
a socialist revoltutio:
the economy, the pre
famous battle cry, “W
to lose but your chai
believed it prevente
Instead of identifying
workers in individual
countries.
Marx died in 188
55. vision concrete by e:
The Socialist Interna
and labor parties es
lived, the SI's achiev
Labor Day and the cr
importantly, it initia
workday.
The SI collapsed
refused or were unat
for the war. Many o
each other. It was a cc
and their organizatic
each other, their long
As the SI colla
the so-called Russia
overthrown and repl:
Bolshevik Party and
called the Union of S
majority of the men
believe in obtaining |
Rather, they exhort
Ironically and
not able to join
he Senate. The
n breaking out.
intensification
Axis Powers—
hito’s Japan—
nctive disdain
impose their
Ist of this war
mposed of the
and Belgium)
ne of the more
> still around
World Health
56. * Organization
blueprint for
espect, despite
ns’ principles
epts of liberal
need to form
enshrined the
1-states. From
nation. These
Of the United
nan socialist
alist, but who
| nationalism.
lism should
> in domestic
d a premium
to countries,
i 5
A History of Global Politics: Creating an International Order hE
but into classes. The capitalist class referred = i owners ey
factories, companies, and other “means of a ds rin :
the proletariat class included those who did not. own the mea
production, but instead, worked for the capitalists.
Marx and his co-author, Friedrich Engels, believed i in
a socialist revoltution seeking to cyssiliuy the state and a i
the economy, the proletariat “had no ine Hence, their nil
famous battle cry, “Workers of the world, go! You have no i
to lose but your chains.” They opposed nationalism rg b i
believed it prevented the unification of the gd s n :
Instead of identifying with other workers, nationalism on Ee
workers in individual countries identify with the capitalists of the
countries.
Marx died in 1883, but his followers soon sought to make his
vision concrete by establishing their international Sp
The Socialist International (SI) was a union of European him i
and labor parties established in Paris in 1889. § [thovig s igi
58. and the United Kingdom would, of course, not trust the Soviet
Union in their fight against Hitler's Germany. These countries
A His
wondered if the Sovie
in their backyards. To
Stalin, dissolved the C
After the war, ho
as the Communist In,
Union took over the
States, the Soviet Un
llurope into their rest
like the Comintern b
parties that had taker
With the event
whatever existing tho
practically disappeal
1951, but its influence
has never been consi
to this very day.
For the postwa
would once again be
rise of the United Na
Conclusion
This lesson exa
In tracing these ro
provided. Moreove
the broader phenc
a very crucial asp
are heightened by
increased interdef
state-to-state relat
also facilitated b;
global norms and
organization, of cot
59. A History of Global Politics: Creating an International Order | 37
ods of terror if wondered if the Soviet Union was trying to promote revolutions
as Communist | in their backyards. To appease his allies, Lenin's successor, Joseph
Stalin, dissolved the Comintern in 1943.
After the war, however, Stalin re-established the Comintern
as the Communist Information Bureau (Cominform). The Soviet
Union took over the countries in Eastern Europe when the United
States, the Soviet Union, and Great Britain divided the war-torn
Furope into their respective spheres of influence. The Cominform,
like the Comintern before it, helped direct the various communist
parties that had taken power in Eastern Europe.
With the eventual collapse of the Soviet Union in 1991,
whatever existing thoughts about communist internationalism also
practically disappeared. The SI managed to re-establish itself in
1951, but its influence remained primarily confined to Europe, and
has never been considered a major player in international relations
to this very day.
For the postwar period, however, liberal internationalism
would once again be ascendant. And the best evidence of this is the
TL tise of the United Nations as the center of global governance.
ss the world,
“omintern) in Conclusion
for directing
tional was not This lesson examined the roots of the international system.
t was also less In tracing these roots, a short history of internationalism was
governance of provided. Moreover, internationalism is but one window into
the broader phenomenon of globalization. Nevertheless, it is
a very crucial aspect of globalization since global interactions
are heightened by the increased interdependence of states. This
increased interdependence manifests itself not just through
state-to-state relations. Increasingly, international relations are
also facilitated by international organizations that promote
global norms and policies. The most prominent example of this
61. more often than not
Moreover, when they
2014—it becomes a ¢
that states in an inte
global norms mean
despite the lack of a
refers to the various i
1. What do you think of nationalism?
2. What is necessary for the development of an international
order?
3. What do you think of the League of Nations?
4. What is the role of revolution in internationalism?
There are man
treaties and form or
international law (i
between states as opJ
non-governmental
formal state power,
@ Learning Outcomes
At the end of this lesson, you should be able to:
1. define global governance;
2. identify the roles and functions of the United Nations; and
3 determine the challenges of global governance in the twenty-first
century.
Although many internationalists like Bentham and Kant
imagined the possibility of a global government, nothing of the
sort exists today. There is no one organization that various states
are accountable to. Moreover, no organization can militarily
compel a state to obey predetermined global rules. There is,
however, some regularity in the general behavior of states. For
example, they more or less follow global navigation routes and,
more often than not, respect each other’s territorial boundaries.
Moreover, when they do not—like when Russia invaded Crimea in
62. 2014—it becomes a cause for global concern and debate. The fact
that states in an international order continue to adhere to certain
global norms means that there is a semblance of world order
despite the lack of a single world government. Global governance
refers to the various intersecting processes that create this order.
There are many sources of global governance. States sign
treaties and form organizations, in the process legislating public
international law (international rules that govern interactions
between states as opposed to, say, private companies). International
non-governmental organizations (NGOs), though not having
formal state power, can lobby individual states to behave in a
0 | The Structures of Globalization
certain way (for example, an international animal protection NGO
can pressure governments to pass animal cruelty laws). Powerful
transnational corporations can likewise have tremendous effects
on global labor laws, environmental legislation, trade policy, etc.
Even ideas such as the need for “global democracy” or the clamor
for “good governance” can influence the wavs international actors
8g
behave.
One lesson will not be able to cover the various ways global
governance occurs. As such, this lesson will only examine
how global governance is articulated by intergovernmental
organizations. It will focus primarily on the United Nations (UN)
as the most prominent intergovernmental organization today.
What is an International Organization?
When scholars refer to groups like the UN or institutions like
the IMF and the World Bank (see Lesson 2), they usually call them
international organizations (10s). Although international NGOs
are sometimes considered as IOs, the term is commonly used to
refer to international intergovernmental organizations or groups
that are primarily made up of member-states.!®
One major fallacy about international organizations is that
they are merely amalgamations of various state interests. In the
1960s and 1970s, many scholars believed that IOs were just venues
63. where the contradicting, but sometimes intersecting, agendas of
countries were discussed—no more than talk shops. What has
become more evident in recent years, however, is that [Os can take
on lives of their own. For example, as seen in Lesson 2, the IMF
was able to promote a particular form of economic orthodoxy that
stemmed mainly from the beliefs of its professional economists,
IOs can thus become influential as independent organizations.
International relations scholars Michael N. Barnett and Martha
Finnemore listed the following powers of IOs.
The
First, IOs have
can invent and app
standards.’ For exai
Refugees (UNHCR)
for more). And since
their borders, this po
Second, IOs have
function related to
“development” neec
and individuals view
such, the meanings t
example, recently, th
as not just safety f
environmental harm
Finally, IOs h:
are accepted codes
nevertheless produ
classify and fix mea
world, thereby est:
are, as Barnett anc
of our time. Their
that IOs are staffe
considered experts
economists come ta
thus carry some fc
norms regarding t
development projec
Because of the
64. great good and gr
like environmenta
other entrenched
communities that
the Nobel Prize-v
criticized the IMF |
economists made re
The United Nations and Contemporary Global Governance | #1
~
First, 10s have the power of classification. Because 10s
J
ful can invent and apply categories, they create powerful global
Cts standards.” For example, it is the UN High Commissioner for
Hilo: Refugees (UNHCR) that defines what a refugee is (see Lesson 10
10r for more). And since states are required to accept refugees entering
ors their borders, this power to establish identity has concrete effects.”
Second, IOs have the power to fix meanings. This is a broader
bal function related to the first. Various terms like “security” or
ne “development” need to be well-defined. States, organizations,
tal and individuals view IOs as legitimate sources of information. As
N) such, the meanings they create have effects on various policies. For
example, recently, the United Nations has started to define security
as not just safety from military violence, but also safety from
environmental harm.”
Finally, IOs have the power to diffuse norms. Norms
are accepted codes of conduct that may not be strict law, but
ke nevertheless produce regularity in behavior. IOs do not only
m classify and fix meanings; they also spread their ideas across the
Js world, thereby establishing global standards. Their members
to are, as Barnett and Finnemore emphasized, the “missionaries”
ps of our time. Their power to diffuse norms stems from the fact
that IOs are staffed with independent bureaucracies, who are
at considered experts in various fields. For example, World Bank
e economists come to be regarded as experts in development and
es thus carry some form of authority. They can, therefore, create
of norms regarding the implementation and conceptualization of
1s development projects.
ce Because of these immense powers, IOs can be sources of
EF great good and great harm. They can promote relevant norms
65. at like environmental protection and human rights. But, like
S. other entrenched bureaucracies, they can become sealed-off
S. communities that fail to challenge their beliefs. For example,
a the Nobel Prize-winning economist Joseph Stiglitz famously
criticized the IMF for using a “one-size-fits-all” approach when its
economists made recommendations to developing countries.”
42 | The Structures of Globalization
The United Nations
The main headquarters of the United Nations in New York
Having examined the powers, limitations, and weaknesses of
IOs, the spotlight will now fall on the most prominent IO in the
contemporary world, the United Nations (UN). After the collapse
of the League of Nations at the end of World War II, countries that
worried about another global war began to push for the formation
of a more lasting international league. The result was the creation
of the UN. Although the organization is far from perfect, it should
be emphasized that it has so far achieved its primary goal of
averting another global war. For this reason alone, the UN should
be considered a success.
The UN is divided into five active organs. The General
Assembly (GA) is UN’s “main deliberative policymaking and
representative organ.” According to the UN charter: “Decisions
on important questions, such as those on peace and security,
admission of new members, and budgetary matters, require a
two-thirds majority of the General Assembly. Decisions on other
questions are done by simple majority. Annually, the General
Assembly elects a GA President to serve a one-year term of
office.”?* All member states (currently at 193) have seats in the GA.
The Philippines played a prominent role in the GA’s early years
when Filipino diplomat Carlos P. Romulo was elected GA president
from 1949-1950.
The |
Chinese Presider
66. Although the GA
the UN, many comm
to be the most power
of 15 member states.
terms. The other fiv
5 (P5)—are China,
the United States. T
since the founding c
election. The SC tak
threat to the peace or
to a dispute to settle
methods of adjustme
resort to imposing s:
to maintain or restor
of these powers, stat
state need to obtain t
a military interventi
power.
Much attention
permanent seats an
over the council’s de
member to stop an ¢
SC is heir to the tra
with the Metternich
lesson). It is especic
The United Nations and Contemporary Global Governance | 43
Chinese President Xi Jinping addresses the UN General Assembly.
Although the GA is the most representative organization in
the UN, many commentators consider the Security Council (SC)
{0 be the most powerful. According to the UN, this body consists
sil of 15 member states. The GA elects ten of these 15 to two-year
terms. The other five—sometimes referred to as the Permanent
sellapse 5 (P5)—are China, France, Russia, the United Kingdom, and
cs the United States: These states have been permanent members
CS since the founding of the UN, - cannot be replaced through
Ad election. The SC takes the lead in determining the existence of a
threat to the peace or an act of aggression. It calls upon the parties
smi to a dispute to settle the act by peaceful means and recommends
67. methods of adjustment or terms of settlement. In some cases, it can
resort to imposing sanctions or even authorizing the use of force
General {0 maintain or restore international peace and security.” Because
ng and of these powers, states that seek to intervene militarily in another
ecisions state need to obtain the approval of the SC. With the SC’s approval,
ecurity, a military intervention may be deemed legal. This is an immense
quire a power.
i eter Much attention has been placed on the SC’s P5 due to their
senegal permanent seats and because each country holds veto power
he of over the council’s decisions. It only takes one veto vote from a P5
te GA member to stop an SC action dead in its tracks. In this sense, the
ei SC is heir to the tradition of “great power” diplomacy that began
with the Metternich/Concert of Europe system (see the previous
lesson). It is especially telling that the P5 consists of the major
6 | The Structures of Globalization Toe
On the one hand, the
they are organization
is this tension that w
organizations.
to veto any action, rendering the UN incapable of addressing the
crisis. In response, NATO decided to intervene on its own. Though
the NATO intervention was largely a success, it, nevertheless, left
the UN ineffectual.
However, note t!
ideas that hold inter
own time, you may v
Today, a similar dynamic is evident in Syria, which is
undergoing a civil war. Russia has threatened to veto any SC
resolution against Syria; thus, the UN has done very little to stop
state-sanctioned violence against opponents of the government.
Since Syrian President Bashar al-Assad is an ally of Russian
dictator Vladimir Putin, the latter has shied away from any policy
that could weaken the legitimacy of the former. As a result, the UN
is again ineffectual amid a conflict that has led to over 220,000
people dead and 11 million displaced.”
(?) Guide Que
