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Mataranas,Ocampo, Suelan a. The Attributes of Today’s

Global System
LESSON i. 4 key attributes
ii. What does a country
means or academics
OUTLINE called a nation-state?
1. INTRODUCTION OF iii. What then is the
GLOBALIZATION difference between
a. Definition and Concept nation and state?
i. Giddens
ii. Robertson
iii. Harvey INTRODUCTION OF GLOBALIZATION
iv. Sunny Levin institution
v. Steger
b. Early Usage of the Term ● This topic introduces the concepts
Globalization and various definitions of
c. Globalization as process, globalization as a process condition
condition, and ideology and ideology. It exposes the learners
d. Impacts of Globalization on to the academic and non-biased
the Academe definition of globalization based on
e. Theoretical Paradigms political scientists, economists, and
Associated with Globalization cultural and communication experts.
f. Misconception about
Globalization DEFINITION AND CONCEPT
2. BRIEF HISTORY OF
GLOBALIZATION
ACCEPTED DEFINITION OF GLOBALIZATION
a. Silk road
b. 1st Wave of Globalization ● Giddens (1990) defines it as the
c. World Wars “intensification of worldwide social
d. 2nd and 3rd wave of relations which link distant localities
Globalization in such a way that local happenings
e. Globalization 4.0 are shaped by events occurring
3. GLOBALIZATION OF THE WORLD
many miles away and vice versa”
ECONOMY
a. International Monetary Fund ● Robertson (1992) defines
(IMF) globalization as a concept that
b. International Trading Systems “refers both to the compression of
c. The Bretton Woods System the world and the intensification
d. Neoliberalism and Its of consciousness of the world as a
Discontents whole.
e. The Global Financial Crisis
● Harvey (1989) introduced
and the Challenge to
Neoliberalism globalization as the compression of
f. Economic Globalization Today time and space and the annihilation
4. HISTORY OF GLOBAL POLITICS of distance
● Sunny Levin Institute looks at and was coined "global village" in
globalization as a process of 1962 by Marshall McLuhan, a
interaction and integration among Canadian who analyzed the impact
of mass media on society
the people, companies, and
● Globalization was also first used as
governments of different nations, a
a term in academic circles in the
process driven by international trade
decades of 1960s and 1970s but
and investment and aided by
gained wide interest in the 1990s
information technology.
● Theodore Levitt is usually credited
● Steger (2005) states that this
with its coining through the article he
process has effects on the
wrote in 1983 for Harvard
environment, on culture, on political
● Business Review entitled
systems, on economic development
“Globalization of markets” Scholars
and prosperity, and on human
of the field in different discipline
physical well-being in societies
have different analyses and ideas
around the world.
about the phenomenon
● Globalization scholars do
○ Historians are more
non-subscription to sociological
interested determining
viewpoint but argue that
whether globalization is really
internalization and
a modern phenomenon
multi-nationalization are phases that
○ Economists look into the
precede globalization because the
changing patterns of
latter heralds the end of the state
international trade and
system as the nucleus of human
commerce as well as the
activities (Grupo de Lisboa, 1994,
unequal distribution of wealth
quoted in De Soussa Santos: 68)
○ Political scientists focus more
○ Globalization takes outside
on the impact of the forces of
the formal structure of the
globalization, such as
nation-state
international
○ Globalization marks the
non-governmental
increasing irrelevance of the
organizations and
nation-state
international organizations,
○
on the state and vice versa.
EARLY USAGE OF TERM GLOBALIZATION
GLOBALIZATION AS A PROCESS,
● According to the Oxford Dictionary, CONDITION AND
“globalization” was first employed IDEOLOGY
in 1930. It entered the
Merriam-Webster dictionary in GLOBALIZATION AS A PROCESS
1951.
● It was widely used by economists ● Viewed as a multidimensional set of
and social scientists by the 1960s social processing that generates and
 increases “worldwide social ● Globalization is also referred to
interdependencies and exchanges by scholars as “globality”
while at the same time fostering in ● Scholte (2008) refers to globality
people a growing awareness of as social condition is
deepening connections between the
characterized by thick
local and the distant” (Steger, 2005)
economic, political and cultural
● Another variant on this periodization
refers to neoliberal globalization,
interconnections and global
1980-2000 flow that render political borders
● In sociology, began in modernity and economic barriers irrelevant
during the period of Renaissance,
GLOBALIZATION AS IDEOLOGY
Enlightenment, French
Revolutionmand lasted until the
● There are (6) cores claims of
period of industrialization in the late
globalization as an ideology :
1700s and throughout the 1800s a. Globalization is about the
● in political economy, it can be traces liberalization and global
back to the 1500, following Marx’s integration of markets.
dictum, “the conquest of the world b. Globalization is about the
market marks the birth of modern triumphs of market over
capitalism raises issues of governments” (Steger 2005)
“Eurocentrism” and “intellectual c. Globalization is inevitable
apartheid” and equivalent to ignoring and irreversible.
earlier forms and infrastructure of d. Nobody is in charge
capitalism. ofglobalization
e. Globalization furthers the
spread of democracy in the
world.
f. Globalization requires a
global war on terror
● globalization is a political belief
system that benefits a certain class

IMPACTS OF GLOBALIZATION ON THE

ACADEME
● 1970s gained the interest and
attention of most social scientists
● Surge in the number of scholarly
works about globalization
GLOBALIZATION AS CONDITION
● Enrichment of literature on processes that comprise
globalization such as studies on globalization
transnational, sexualities, global ● Space, time and Globalization -
tourism, evolution of state Giddens, time-space distanciation as
institutions, the restructuring of work the intensification of worldwide
and the improvement of working social relations which link distant
conditions, transnational care-giving, localities in such a way that local
transnational crime syndicates and happenings are shaped by events
global media, etc. occurring many miles away and vice
● Globalization’s impact on human versa. Global city of Sassen and
lives Globalization literature Glocalization of Robertson
suggests two major branches of ● Transionality and Transionalism -
research: ● Global culture paradigm - the
○ Those studying specific theorist emphasize the rapid growth
problems or issues as they of the mass media and resultant
relate to globalization global cultural flows and images in
○ Those studying the concept recent decades
of globalization itself –
theorizing the very nature of
MISCONCEPTION ABOUT GLOBALIZATION
the process
● Globalization as internationalization
THEORETICAL PARADIGMS ● Globalization as liberalization
ASSOCIATED WITH ● Globalization as universalization and
GLOBALIZATION westernization
● World-System is a holistic,
interdisciplinary framework for BRIEF HISTORY OF GLOBALIZATION
understanding global history and
social dynamics. It prioritizes the SILK ROAD (1st century BC-5th century
world-system, rather than individual AD, and 13th-14th centuries AD)
nation-states, as the central unit of
analysis.
● a network of pathways in the ancient
● Global capitalism paradigm - also
world that spanned from China to
known as capitalist globalization.
what is now the Middle east and to
they focus on new global production
Europe.
and financial system
● Called as such because one of the
● The Network society school of
most profitable products traded
thought - technology and
through this network was silk, which
technological change are the
was highly prized especially in the
underlying causes of the several
 area that now the Middle east as Age of Discovery expanded trade
well as in the West (today’s Europe) across oceans, connecting the
● Used Silk Road from 130 BCE until East and West, and marking the
1453 when Ottoman Empire closed accidental discovery of the
it; it reaches only international but Americas.
not global because it has no ocean
routes, reaching the American ● European explorers, particularly
Continent. from Portugal and Spain, driven by
the advancements in astronomy,
SPICE ROUTES (7th-15th centuries) mechanics, physics, and shipping
from the Scientific Revolution,
● Trade expanded significantly due to played a pivotal role in these
Islamic merchants from the Arabian discoveries.
Peninsula.
● The founder of Islam, Prophet ● The Portuguese and Spanish were
Mohammed, was a merchant, later followed by the Dutch and
reflecting the importance of trade in English, who not only discovered
Islamic culture. new lands but also integrated these
● By the 9th century, Muslim traders territories into their economies,
dominated Mediterranean and Indian primarily through subjugation and
Ocean trade routes. colonization.
● The primary focus of trade in the
Middle Ages was spices such as ● Fundamentally transformed global
cloves, nutmeg, and mace from trade. One of the most notable
Indonesia's Spice Islands. discoveries was Christopher
● Spices were traded mostly by sea, Columbus' arrival in America, which
unlike silk, but the volume remained led to the decline of pre-Colombian
low as they were luxury goods. civilizations. However, it was
● The foundations for global trade Ferdinand Magellan's
networks were laid, but true circumnavigation that had the most
globalization had yet to emerge. profound impact on trade,
particularly by opening a direct route
AGE OF DISCOVERY (15th-18th to the Spice Islands and reducing
centuries) reliance on Arab and Italian
middlemen.
● Widely regarded as the period
during which true global trade began ● The influence of the Age of
to take shape. Unlike the Silk Road, Discovery on European economies
which was limited to land routes was significant, as it introduced new
across Asia and parts of Europe, the commodities such as potatoes,
 tomatoes, coffee, and chocolate. across countries. On the other hand,
These new products altered its industrialization allowed Britain
European lifestyles, while the prices to make products that were in
demand all over the world, like iron,
of previously expensive goods, such
textiles and manufactured goods.
as spices, dropped considerably. ● globalization was obvious in the
numbers. For about a century, trade
● Despite these transformative grew on average 3% per year. That
changes, economists today do not growth rate propelled exports from a
consider the Age of Discovery to share of 6% of global GDP in the
represent true globalization. While early 19th century, to 14% on the
eve of World War I.
trade had undoubtedly become
● As John Maynard Keynes, the
global in scope, it remained highly economist, observed: “The
unequal. inhabitant of London could order by
telephone, sipping his morning tea in
● European empires primarily traded bed, the various products of the
with their own colonies, establishing whole Earth, in such quantity as he
exploitative mercantilist and colonial might see fit, and reasonably expect
their early delivery upon his
economic systems. These systems
doorstep.”
were characterized by the extraction
of resources and labor, including the THE WORLD WARS
inhumane practice of the
transatlantic slave trade, and failed ● a situation that was bound to end in
to foster an interconnected and a major crisis, and it did. In 1914,
balanced global economy. the outbreak of World War I brought
an end to just about everything the
burgeoning high society of the West
1ST WAVE OF GLOBALIZATION had gotten so used to, including
globalization.
● Millions of soldiers died in battle,
● roughly occurred over the century millions of civilians died as collateral
ending in 1914. By the end of the damage, war replaced trade,
18th century, Great Britain had destruction replaced construction,
started to dominate the world both and countries closed their borders
geographically, through the yet again.
establishment of the British Empire, ● The Great Depression in the US
and technologically It was the era of led to the end of the boom in South
the First Industrial Revolution. America, and a run on the banks in
● The “British” Industrial Revolution many other parts of the world.
made for a fantastic twin engine of Another world war followed in
global trade. On the one hand, 1939-1945. By the end of World War
steamships and trains could II, trade as a percentage of world
transport goods over thousands of GDP had fallen to 5%.
miles, both within countries and
2nd and 3rd WAVE OF GLOBALIZATION
● The 2000s saw a significant
● The end of World War II marked the increase in global trade, with exports
beginning of a new era in global rising to about a quarter of global
trade, led by the United States and GDP. Trade, encompassing imports
powered by advancements from the and exports, grew to represent
Second Industrial Revolution, nearly half of the world’s GDP,
such as the car and the airplane. benefitting the global middle class,
with millions joining this economic
● Initially, global trade progressed on group through their participation in
two separate tracks, with the Iron the global economy.
Curtain dividing the world into two
spheres of influence: the capitalist GLOBALIZATION 4.0
West and the centrally planned
economies of the Soviet Union. ● Globalization has entered a new
phase, driven primarily by digital
● By 1989, the fall of the Iron Curtain advancements, with key players like
signaled the start of a truly the US and China leading the way.
globalized world, with global trade This phase includes innovations like
levels rising to match pre-World War e-commerce, digital services, and
I figures. Export accounted for 14% AI, but it also faces challenges such
of global GDP, while middle-class as cyber threats.
incomes in the West grew
significantly. ● The global interconnectedness of
environmental issues, such as
● The collapse of the Soviet Union climate change and deforestation,
further accelerated globalization, adds a negative dimension to
and the establishment of the World globalization. Deforestation,
Trade Organization (WTO) particularly in vital areas like the
encouraged nations worldwide to Amazon rainforest, exacerbates
enter free-trade agreements. This global warming and threatens
included newly independent biodiversity.
countries and China, which joined
the WTO in 2001, transforming from ● Public opinion toward globalization is
an agrarian economy into a global shifting, especially in the West.
manufacturing hub. Economic inequality and social
instability have led to a rise in
● The internet, emerging from the protectionist policies, trade wars,
Third Industrial Revolution, played a and immigration restrictions. Global
key role in connecting people and exports, once a key indicator of
businesses globally. It facilitated globalization's success, are
faster and more integrated global declining.
value chains, with research,
development, sourcing, production, ● Politically, the idea of "globalism" is
and distribution occurring in different losing favor, and the United States,
countries. once the primary driver of global
 trade and security, is stepping back to this definition. How does one define
from its leadership role. "increasing integration"? When is it
considered that trade has increased? Is
● China's President Xi Jinping there a particular threshold?
highlighted the inevitability of
globalization, advocating for a more Even while the IMF and ordinary people
inclusive approach through initiatives grapple with the difficulty of arriving at
like the "Belt and Road." This project precise definitions of globalization, they
aims to modernize global trade usually agree that a drastic economic
routes and foster international change is occurring throughout the world.
cooperation. According to the IMF, the value of trade
(goods and services) as a percentage of
● Alibaba's Silk Road headquarters in world GDP increased from 42.1 percent in
Xi’an reflects this new era of 1980 to 62.1 percent in 2007.8 Increased
globalization. Unlike the old Silk trade also means that investments are
Road, which was dependent on silk moving al over the world at faster speeds.
trade via camels, Alibaba's facility is According to the United Nations Conference
at the forefront of the digital on Trade and Development (UNCTAD), the
economy, supporting e-commerce amount of foreign direct investments flowing
logistics and cloud services. across the world was US$ 57 billion in 1982.
By 2015, that number was $1.76 trillion.'
● The question remains how These figures represent a dramatic increase
Globalization 4.0 will continue to in global trade in the span of just a few
evolve, as technological decades. It has happened not even after
advancements and international one human lifespan!
dynamics shape the future of global
interconnectedness. Apart from the sheer magnitude of
commerce, we should also note the
increased speed and frequency of trading.
GLOBALIZATION OF THE WORLD These days, supercomputers can execute
ECONOMY millions of stock purchases and sales
between different cities in a matter of
INTERNATIONAL MONETARY FUND seconds through a process called
high-frequency trading. Even the items
being sold and traded are changing
The International Monetary Fund (IMF) drastically. Ten years ago, buying books or
regards "economic globalization" as a music indicates acquiring physical items.
historical process representing the result of Today, however, a "book" can be digitally
human innovation and technological downloaded to be read with an e-reader,
progress. It is characterized by the and a music "album" refers to the 15 songs
increasing integration of economies around on mp3 format you can purchase and
the world through the movement of goods, download from iTunes.
services, and capital across borders. These
changes are the products of people, This lesson aims to trace how economic
organizations, institutions, and technologies. globalization came about. It will also assess
As with all other processes of globalization,
there is a qualitative and subjective element
this globalization system, and examine who goods as a means to boost their country's
benefits from it and who is left out. income (called monetary reserves later on).
To defend their products from competitors
International Trading Systems who sold goods more cheaply, these
regimes (mainly monarchies) imposed high
International trading systems are not new. tariffs, forbade colonies to trade with other
The oldest known international trade route nations, restricted trade routes, and
was the Silk Road-a network of pathways in subsidized its exports. Mercantilism was
the ancient world that spanned from China thus also a system of global trade with
to what is now the Middle East and to multiple restrictions.
Europe. It was called as such because one
of the most profitable products traded A more open trade system emerged in 1867
through this network was silk, which was when, following the lead of the United
highly prized especially in the area that is Kingdom, the United States and other
now the Middle East as well as in the West European nations adopted the gold
(today's Europe). Traders used the Silk standard at an international monetary
Road regularly from 130 BCE when the conference in Paris. Broadly, its goal was to
Chinese Han dynasty opened trade to the create a common system that would allow
West until 1453 BCE when the Ottoman for more efficient trade and prevent the
Empire closed it. isolationism of the mercantilist era. The
However, while the Silk Road was countries thus established a common basis
international, it was not truly "global" for currency prices and a fixed exchange
because it had no ocean routes that could rate system-all based on the value of gold.
reach the American continent. So when did
full economic globalization begin? Despite facilitating simpler trade, the gold
According to historians Dennis O. Flynn and standard was still a very restrictive system,
Arturo Giraldez, the age of globalization as it compelled countries to back their
began when "all important populated currencies with fixed gold reserves. During
continents began to exchange products World War I, when countries depleted their
continuously-both with each other directly gold reserves to fund their armies, many
and indirectly via other continents-and in were forced to abandon the gold standard.
values sufficient to generate crucial impacts Since European countries had low gold
on all trading partners."» Flynn and Giralder reserves, they adopted floating currencies
trace this back to 1571 with the that were no longer redeemable in gold.
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
 to achieve this goal was to set up a network
Returning to a pure standard became more of global financial institutions that would
difficult as the global economic crisis called promote economic interdependence and
the Great Depression started during the prosperity. The Bretton Woods system was
1920s and extended up to the 1930s, inaugurated in 1944 during the United
further emptying government coffers. This Nations Monetary and Financial Conference
depression was the worst and longest to prevent the catastrophes of the early
recession ever experienced by the Western decades of the century from reoccurring and
world. Some economists argued that it was affecting international ties.
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 The Bretton Woods system was largely
government was able to free up money to influenced by the ideas of British economist
spend on reviving the economy.12 At the John Maynard Keynes who believed that
height of World War II, other major economic crises occur not when a country
industrialized countries followed suit. does not have enough money, but when
money is not being spent and, thereby, not
Though more indirect versions of the gold moving. When economies slow down,
standard were used until as late as the according to Keynes, governments have to
1970s, the world never returned to the gold reinvigorate markets with infusions of
standard of the early 20th century. Today, capital. This active role of governments in
the world economy operates based on what managing spending served as the anchor
are called fiat currencies--currencies that for what would be called a system of global
are not backed by precious metals and Keynesianism.
whose value is determined by their cost
relative to other currencies. 'This system Delegates at Bretton Woods agreed to
allows governments to freely and actively create two financial institutions. The first
manage their economies by increasing or was the International Bank for
decreasing the amount of money in Reconstruction and Development (IBRD, or
circulation as they see fit. World Bank) to be responsible for funding
postwar reconstruction projects. It was a
The Bretton Woods System critical institution at a time when many of the
world's cities had been destroyed by the
After the two world wars, world leaders war. The second institution was the
sought to create a global economic system International Monetary Fund (IMF), which
that would ensure a longer-lasting global was to be the global lender of last resort to
peace. They believed that one of the ways prevent individual countries from spiraling
into credit crises. If economic growth in a their economies and growth. The "oil
country slowed down because there was embargo" affected the Western economies
not enough money to stimulate the that were reliant on oils To make matters
economy, the IMF would step in. 'To this worse, the stock markets crashed in 1973.
day, both institutions remain key players in 1974 after the United States stopped linking
economic globalization. the dollar to gold, effectively ending the
Bretton Woods system." The result was a
Shortly after Bretton Woods, various phenomenon that Keynesian economics
countries also committed themselves to could not have predicted--a phenomenon
further global economic integration through called stagflation, in which a decline in
the General Agreement on 'Tariffs and economic growth and employment
'Trade (GATT) in 1947. GATT's main (stagnation) takes place alongside a sharp
purpose was to reduce tariffs and other increase in prices (inflation).
hindrances to free trade.
Around this time, a new form of economic
Neoliberalism and Its Discontents thinking was beginning to challenge the
Keynesian orthodoxy. Economists such as
The high point of global Keynesianism came Friedrich Hayek and Milton Friedman
in the mid-1940s to the early 1970s. During argued that the governments' practice of
this period, governments poured money into pouring money into their economies had
their economies, allowing people to caused inflation by increasing demand for
purchase more goods and, in the process, goods without necessarily increasing
increase demand for these products. supply. More profoundly, they argued that
As demand increased, so did the prices of government intervention in economies
these goods. Western and some Asian distorts the proper functioning of the market.
economies like Japan accepted this rise in
prices because it was accompanied by Economists like Friedman used the
general economic growth and reduced economic turmoil to challenge the
unemployment. The theory went that, as consensus around Keynes's ideas. What
prices increased, companies would earn emerged was a new form of economic
more, and would have more money to hire thinking that critics labeled neoliberalism.
workers. Keynesian economists believed From the 1980s onward, neoliberalism
that all this was a necessary trade-off for became the codified strategy of the United
economic development. States Treasury Department, the World
Bank, the IMF, and eventually the World
In the early 1970s, however, the prices of oil Trade Organization (WTO)-a new
rose sharply as a result of the Organization organization founded in 1995 to continue
of Arab Petroleum Exporting Countries' the tariff reduction under the GATT. The
(OAPEC, the Arab member-countries of the policies they forwarded came to be called
Organization of Petroleum Exporting the Washington Consensus.
Countries or OPEC) imposition of an
embargo in response to the decision of the The Washington Consensus dominated
United States and other countries to global economic policies from the 1980s
resupply the Israeli military with the needed until the early 2000s. Its advocates pushed
arms during the Yom Kippur War. Arab for minimal government spending to reduce
countries also used the embargo to stabilize government debt. They also called for the
privatization of government-controlled accumulated wealth under the previous
services like water, power, communications, communist order had the money to
and transport, believing that the free market purchase these industries. In some cases,
can produce the best results. Finally, they the economic elites relied on easy access to
pressured governments, particularly in the government funds to take over the
developing world, to reduce tariffs and open industries. This practice has entrenched an
up their economies, arguing that it is the oligarchy that still dominates the Russian
quickest way to progress. Advocates of the economy to this very day.
Washington Consensus conceded that,
along the way, certain industries would be The Global Financial Crisis and the
affected and die, but they considered this Challenge to Neoliberalism
"shock therapy" necessary for long-term
economic growth.
Russia's case was just one example of how
the "shock therapy" of neoliberalism did not
The appeal of neoliberalism was in its
lead to the ideal outcomes predicted by
simplicity. Its advocates like US President
economists who believed in perfectly free
Ronald Reagan and British Prime Minister
markets. The greatest recent repudiation of
Margaret Thatcher justified their reduction in
this thinking was the recent global financial
government spending by comparing
crisis of 2008-2009.
national economies to households.
Thatcher, in particular, promoted an image
Neoliberalism came under significant strain
of herself as a mother, who reigned in
during the global financial crisis of
overspending to reduce the national debt.
2007-2008 when the world experienced the
greatest economic downturn since the Great
The problem with the household analogy is
Depression.The crisis can be traced back to
that governments are not households. For
the 1980s when the United States
one, governments can print money, while
systematically removed various banking and
households cannot. Moreover, the constant
investment restrictions.
taxation systems of governments provide
them a steady flow of income that allows
The scaling back of regulations continued
them to pay and refinance debts steadily.
until the 2000s, paving the way for a
brewing crisis. In their attempt to promote
Despite the initial success of neoliberal
the free market, government authorities
politicians like Thatcher and Reagan, the
failed to regulate bad investments occurring
defects of the Washington Consensus
in the US housing market. Taking advantage
became immediately palpable. A good early
of "cheap housing loans," Americans began
example is that of post-communist Russia.
building houses that were beyond their
After Communism had collapsed in the
financial capacities.
1990s, the IMF called for the immediate
privatization of all government industries.
To mitigate the risk of these loans, banks
The IMF assumed that such a move would
that were lending house owners' money
free these industries from corrupt
pooled these mortgage payments and sold
bureaucrats and pass them on to the more
them as "mortgage-backed securities"
dynamic and independent private investors.
(MBSs). One MBS would be a combination
What happened, however, was that only
of multiple mortgages that they assumed
individuals and groups who had
would pay a steady rate.
 These series of interconnections allowed for
Since there was so much surplus money a global multiplier effect that sent ripples
circulating, the demand for MBSs increased across the world. For example, Iceland's
as investors clamored for more investment banks heavily depended on foreign capital,
opportunities. In their haste to issue these so when the crisis hit them, they failed to
loans, however, the banks became less refinance their loans. As a result of this
discriminating. They began extending loans credit crunch, three of Iceland's top
to families and individuals with dubious commercial banks defaulted. From 2007 to
credit records-people who were unlikely to 2008, Iceland's debt increased more than
pay their loans back. These high-risk seven-fold.
mortgages became known as sub-prime
mortgages. Until now, countries like Spain and Greece
are heavily indebted (almost like Third
Financial experts wrongly assumed that, World countries), and debt relief has come
even if many of the borrowers were at a high price. Greece, in particular, has
individuals and families who would struggle been forced by Germany and the IMF to cut
to pay, a majority would not default. back on its social and public spending.
Moreover, banks thought that since there Affecting services like pensions, health
were so many mortgages in just one MBS, a care, and various forms of social security,
few failures would not ruin the entirety of the these cuts have been felt most acutely by
investment. the poor. Moreover, the reduction in
Banks also assumed that housing prices government spending has slowed down
would continue to increase. Therefore, even growth and ensured high levels of
if homeowners defaulted on their loans, unemployment.
these banks could simply reacquire the
homes and sell them at a higher price, The United States recovered relatively
turning a profit. quickly thanks to a large Keynesian-style
Sometime in 2007, however, home prices stimulus package that President Barack
stopped increasing as supply caught up with Obama pushed for in his first months in
demand. Moreover, it slowly became office. The same cannot be said for many
apparent that families could not pay off their other countries. In Europe, the continuing
loans. This realization triggered the rapid economic crisis has sparked a political
reselling of MBSs, as banks and investors upheaval. Recently, far-right parties like
tried to get rid of their bad investments. This Marine Le Pen's Front National in France
dangerous cycle reached a tipping point in have risen to prominence by unfairly
September 2008, when major investment blaming immigrants for their woes, claiming
banks like Lehman Brothers collapsed, that they steal jobs and leech off welfare.
thereby depleting major investments. These movements blend popular
resentment with utter hatred and racism.
The crisis spread beyond the United States We will discuss their rise further in the final
since many investors were foreign lesson.
governments, corporations, and individuals.
The loss of their money spread like wildfire Economic Globalization Today
back to their countries.
The global financial crisis will take decades
to resolve. The solutions proposed by
certain nationalist and leftist groups of corporations, and individuals benefiting a lot
closing national economies to world trade, more than others. The series of trade talks
however, will no longer work. The world has under the WTO have
become too integrated. Whatever one's
opinion about the Washington Consensus led to unprecedented reductions in tariffs
is, it is undeniable that some form of and other trade barriers, but these
international trade remains essential for processes have often been unfair.
countries to develop in the contemporary
world. First, developed countries are often
protectionists, as they repeatedly refuse to
Exports, not just the local selling of goods lift policies that safeguard their primary
and services, make national economies products that could otherwise be
grow at present. In the past, those that overwhelmed by imports from the
benefited the most from free trade were the developing world. The best example of this
advanced nations that were producing and double standard is Japan's determined
selling industrial and agricultural goods. The refusal to allow rice imports into the country
United States, Japan, and the to protect its farming sector. Japan's
member-countries of the European Union justification is that rice is "sacred."
were responsible for 65 percent of global Ultimately, it is its economic muscle as the
exports, while the developing countries only third largest economy that allows it to resist
accounted for 29 percent. When more pressures to open its agricultural sector.
countries opened up their economies to
take advantage of increased free trade, the The United States likewise fiercely protects
shares of the percentage began to change. its sugar industry, forcing consumers and
By 2011, developing countries like the sugar-dependent businesses to pay higher
Philippines, India, China, Argentina, and prices instead of getting cheaper sugar from
Brazil accounted for 51 percent of global plantations of Central America.
exports while the share of advanced
nations-including the United States--had Faced with these blatantly protectionist
gone down to 45 percent.15 The WTO-led measures from powerful countries and
reduction of trade barriers, known as trade blocs, poorer countries can do very little to
liberalization, has profoundly altered the make economic globalization more just.
dynamics of the global economy. Trade imbalances, therefore, characterize
economic relations between developed and
In the recent decades, partly as a result of developing countries.
these increased* exports, economic The beneficiaries of global commerce have
globalization has ushered in an been mainly transnational corporations
unprecedented spike in global growth rates. (TNCs) and not governments.
According to the IMF, the global per capita And like any other business, these TNCs
GDP rose over five-fold in the second half of are concerned more with profits than with
the 20th century. It was this growth that assisting the social programs of the
created the large Asian economies like governments hosting them. Host countries,
Japan, China, Korea, Hong Kong, and in turn, loosen tax laws, which prevents
Singapore. wages from rising, while sacrificing social
And yet, economic globalization remains an and environmental programs that protect
uneven process, with some countries, the underprivileged members of their
societies. The term "race to the bottom" American culture if not for the trade that
refers to countries' lowering their labor allows locals to watch American movies,
standards, including the protection of listen to American music, and consume
workers' interests, to lure in foreign American products. The globalization of
investors seeking high profit margins at the politics is likewise largely contingent on
lowest cost possible. Governments weaken trade relations. These days, many events of
environmental laws to attract investors, foreign affairs are conducted to cement
creating fatal consequences on their trading relations between and among
ecological balance and depleting them of states.
their finite resources (like oil, coal, and
Given the stakes involved in economic
globalization, it is perennially important to
ask how this system can be made more
just. Although some elements of global free
trade can be scaled back, policies cannot
do away with it as a whole. International
policymakers, therefore, should strive to
think of ways to make trading deals fairer.
Governments must also continue to devise
ways of cushioning the most damaging
effects of economic globalization, while
ensuring that its benefits accrue for
everyone.

minerals).
Conclusion

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.

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
 HISTORY OF GLOBAL POLITICS
commentators believe that the Bangsamoro
is a separate nation existing within the
Philippines but,through their
● The Attributes of Today’s Global elites,recognizes the authority of the
System Philippine state. Meanwhile,if there are
World Politics has four key attributes states with multiple nations,there are also
single nations with multiple states.The
- There are countries or states nation of Korea is divided into North and
that are independent and South Korea,whereas the"Chinese
govern themselves nation"may refer to both the People's
- These countries interact with Republic of China (the mainland) and
each other through Taiwan.
diplomacy ● What then is the difference between
- There are international nation and state?
organisations, like the United ● State refers to a country and its
Nations (UN), that facilitate government, i.e.,the government of
these interactions the Philippines.
- Beyond simply facilitating ● A state has four attributes.
meetings between states, - First, it exercises authority
international organisations over a specific population,
also take on lives of their called its citizens.
own. - Second, it governs a specific
The UN, for example, apart from being a territory.
meeting ground for presidents and other - Third, a state has a structure
heads of state, it also has a task-specific of government that crafts
agencies like the World Health Organization various rules that people（
(WHO) and the International Labour society) follow.
Organization (ILO) - Fourth and the most crucial,
● What is the origin of this system? the state has sovereignty
● What does a country means or over its territory.
academics called a nation-state? Sovereignty here refers to internal and
- The nation-state is a external authority. Internally, no individuals
relatively modern or groups can operate in a given national
phenomenon in human territory by ignoring the state. This means
history, and people did not that groups like churches, civil society
always organize themselves organizations, corporations, and other
as countries entities have to follow the laws of the state
- The nation-state is where they establish their parishes, offices,
composed of two or headquarters. Externally, sovereignty
non-interchangeable means that a state's policies and
terms.Not all states are procedures are independent of the
nations and not all nations interventions of other states. Russia or
are states. China, for example, cannot pass laws for
The nation of Scotland,for example,has its the Philippines and vice versa. On the other
own flag and national culture,but still hand, the nation, according to Benedict
belongs to a state called the United Anderson, is an “imagined community”
Kingdom. Closer to home,many
● It is limited because it does not go beyond
a given “official boundary,” and because This is why, for example, the nation of
rights and responsibilities are mainly the Quebec, though belonging to the state of
privilege and concern of the citizens of that Canada, has different laws about language
nation.Being limited means that the nation (they are French-speaking and require
has its boundaries. This characteristic is in French language competencies for their
stark contrast to many religious imagined citizens).
communities. It is also for this reason that Scotland,
though part of the United Kingdom, has a
Anyone, for example, can become a strong independence movement led by the
Catholic if one chooses to. In fact, Catholics Scottish Nationalist Party
want more people to join their community;
they refer to it as the call to discipleship. But ● Nation and state are closely related
not everyone can simply become a Filipino. because it is nationalism that facilitates
An American cannot simply go to the state formation. In the modern and
Philippine Embassy and “convert” into a contemporary era, it has been the
Philippine citizen. nationalist movements that have allowed for
● Nations often limit themselves to people the creation of nation-states. States become
who have imbibed a particular culture, independent and sovereign because of
speak a common language, and live in a nationalist sentiment that clamors for this
specific territory. ● Calling it “imagined” does independence.
not mean that the nation is made- up. ● Sovereignty is, thus, one of the
Rather, the nation allows one to feel a fundamental principles of modern state
connection with a community of people politics. Understanding how this became the
even if he/she will never meet all of them in case entails going back as far as 400 years
his/her lifetime ago.

When you cheer for a Filipino athlete in the

The Interstate System
Olympics, for example, it is not because you
personally know that athlete. Rather, you
imagine your connection as both members
Origin of the word, sovereignty - traced back
of the same Filipino community. In a given
to the Treaty of Westphalia, which was a set
national territory like the Philippine
of agreements signed in 1648 to end the
archipelago, you rest in the comfort that the
Thirty Years War between the major
majority of people living in it are also
continental powers of Europe.
Filipinos.
After a brutal religious war between
● Finally, most nations strive to become
Catholics and Protestants,the Holy Roman
states. Nation-builders can only feel a sense
Empire, Spain,France,Sweden,and the
of fulfillment when that national ideal
Dutch Republic designed a system that
assumes an organizational form whose
would avert wars in the future by
authority and power are recognized and
recognizing that the treaty signers exercise
accepted by “the people.”
complete control over their domestic affairs
● Moreover, if there are communities that
and swear not to meddle in each other's
are not states, they often seek some form of
affairs.
autonomy within their “mother states.”
The Westphalian system provided stability Metternich, who was the system's main
for the nations of Europe, until it faced its architect), the Concert's power and authority
first major challenge by Napoleon lasted from 1815 to 1914, at the dawn of
Bonaparte. World War I.

Bonaparte believed in spreading the Despite the challenge of Napoleon to the

principles of the French Revolution-liberty, Westphalian system and the eventual
equality, and fraternityto the rest of Europe collapse of the Concert of Europe after
and thus challenged the power of kings, World War I, present-day international
nobility, and religion in Europe. system still has traces of this history.

The Napoleonic Wars lasted from Until now, states are considered sovereign,
1803-1815 with Napoleon and his armies and Napoleonic attempts to violently impose
marching all over much of Europe. In every systems of government in other countries
country they conquered, the French are frowned upon. Moreover, like the
implemented the Napoleonic Code that Concert system, “great powers” still hold
forbade birth privileges, encouraged significant influence over world politics. For
freedom or religion, and promoted example, the most powerful grouping in the
meritocracy in government service. This UN, the Security Council, has a core of five
system shocked the monarchies and the permanent members, all having veto
hereditary elites (dukes, duchesses, etc.) of powers over the council's decision-making
Europe, and they mustered their armies to process.
push back against the French emperor.
Internationalism
Anglo and Prussian armies finally; defeated
Napoleon in the Battle of Waterloo in 1815,
ending the latter's mission to spread his
The Westphalian and Concert systems
liberal codé across Europe.
divided the world into separate, sovereign
entities.
To prevent another war and to keep their
systems of privilege, the royal powers
Since the existence of this interstate
created a new system that, in effect,
system, there have been attempts to
restored the Westphalian system.
transcend it. Some,like Bonaparte,directly
challenged the system by infringing on other
The Concert of Europe was an alliance of
states' sovereignty,while others sought to
“great powers” -the United Kingdom,
imagine other systems of governance that
Austria, Russia, and Prussia-that sought to
go beyond,but do not necessarily
restore the world of monarchical, hereditary,
challenge,sovereignty.
and religious privileges of the time before
the French Revolution and the Napoleonic
Still, others imagine a system of heightened
Wars.
interaction between various sovereign
states, particularly the desire for greater
More importantly, it was an ålliance that
cooperation and unity among states and
sought to restore the sovereignty of states.
peoples, This desire is called
Under this Metternich system (named after
internationalism
the Austrian diplomat, Klemens von
Internationalism comes in different forms, To many,these proposals for global
but the principle may be divided into two government and international law seemed
broad categories: liberal internationalism to represent challenges to states. Would not
and socialist internationalism. a world government, in effect,become
supreme?And would not its laws overwhelm
the sovereignty of individual states?
Immanuel Kant

The first major thinker of liberal Giuseppe Mazzini

internationalism was the late 18th century
German philosopher Immanuel Kant
● The first thinker to reconcile nationalism
Kant likened states in a global system to with liberal internationalism was the 19th
people living in a given territory. If people century Italian patriot Giuseppe Mazzini
living together require a government to ● Mazzini was both an advocate of the
prevent lawlessness, shouldn't that same unification of the various Italianspeaking
principle be applied to states? mini-states and a major critic of the
Metternich system.
Without a form of world government, he
argued, the international system would be He believed in a Republican government
chaotic.Therefore, states, like citizens of (without kings, queens, and hereditary
countries, must give up some freedoms and succession) and proposed a system of free
“establish a continuously growing state nations that cooperated with each other to
consisting of various nations which will create an international system.
ultimately include the nations of the world.” For Mazzini, free, independent states would
be the basis of an equally free, cooperative
In short, Kant imagined a form of global international system. He argued that if the
government. various Italian mini-states could unify, one
could scale up the system to create, for
example, a United States of Europe.
Jeremy Bentham ● Mazzini was a nationalist internationalist,
who believed that free, unified nation-states
should be the basis of global cooperation.
Writing in the late 18th century as well,
British philosopher Jeremy Bentham (who
coined the word “international"in 1780), President Woodrow Wilson
advocated the creation of “international law”
that would govern the inter-state relations.
● Mazzini influenced the thinking of United
Bentham believed that objective global States president（1913-1921) Woodrow
legislators should aim to propose legislation Wilson, who became one of the 20th
that would create “the greatest happiness of century's most prominent internationalists
all nations taken together." ● 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
Contributions of League of Nations
nations had a right to a free, and sovereign
government.
● Despite its failure, the League gave birth
He hoped that these free nations would
to some of the more task-specific
become democracies, because only by
international organizations that are still
being such would they be able to build a
around until today, the most popular of
free system of international relations based
which are the World Health Organization
on international law and cooperation.
(WHO) and the International Labour
Organization（ILO).
● Wilson, in short, became the most notable
● More importantly, it would serve as the
advocate for the creation of the League of
blueprint for future forms of international
Nations. At the end of World War I in 1918,
cooperation. In this respect, despite its
he pushed to transform the League into a
organizational dissolution, the League of
venue for conciliation and arbitration to
Nations' principles survived World War II.
prevent another war. For his efforts, Wilson
● The League was the concretization of the
was awarded the Nobel Peace Prize in
concepts of liberal internationalism. From
1919.
Kant, it emphasized the need to form
common international principles. From
League of Nations Mazzini, it enshrined the principles of
cooperation and respect among
nationstates. From Wilson, it called for
● The League came into being that same democracy and self-determination.
year (1918). Ironically and unfortunately for Theseideas would re-assert themselves in
Wilson, the United States was not able to the creation of the United Nations in 1946.
join the organization due to strong
opposition from the Senate.
Karl Marx
● The League was also unable to hinder
another war from breaking out. It was
practically helpless to prevent the onset and
● One of Mazzini's biggest critics was
intensification of World War II.
German socialist philosopher Karl Marx who
● On one side of the war were the Axis
was also an internationalist, but who
Powers- Hitler's Germany, Mussolini's Italy,
differed from the former because he did not
and Hirohito's Japan- who were
believe in nationalism.
ultra-nationalists that had an instinctive
disdain for internationalism and preferred to
He believed that any true form of
violently impose their dominance over other
internationalism should deliberately reject
nations.
nationalism,
● It was in the midst of this war between the
which rooted people in domestic concerns
Axis Powers and the Allied Powers
instead of global ones.
(composed of the United States, United
Kingdom, France, Holland, and Belgium)
● Instead, Marx placed a premium on
that internationalism would be eclipsed.
economic equality; he did not divide the
world into countries,but into classes. The
capitalist class referred to the owners of
factories, companies, and other “means of
production.” In contrast, the proletariat class
Vladimir Lenin and the USSR (Union of
included those who did not own the means
Soviet Socialist Republics
of production, but instead, worked for the
capitalists.
● Marx and his co-author, Friedrich Engels, ● As the SI collapsed, a more radical
believed that in a socialist revolution version emerged. In the so-called Russian
seeking to overthrow the state and alter the Revolution of 1917, Czar Nicholas II was
economy, the proletariat “had no nation.” overthrown and replaced by a revolutionary
Hence, their now- famous battle cry, government led by the Bolshevik Party,and
“Workers of the world, unite! You have its leader, Vladimir Lenin.
nothing to lose but your chains.” ● This new state was called the Union of
● They opposed nationalism because they Soviet Socialist Republics, or USSR. Unlike
believed it prevented the unification of the the majority of the member parties of the SI,
world's workers. Instead of identifying with the Bolsheviks did not believe in obtaining
other workers, nationalism could make power for the working class through
workers in individual countries identify with elections.
the capitalists of their countries. ● Rather, they exhorted the revolutionary
“vanguard” parties tolead the revolutions
across the world, using methods of terror in
Socialist International (SI) necessary.
● Today, parties like this are referred to as
Communist parties.
● Marx died in 1883, but his followers soon Vladimir Lenin founded the Comintern to
sought to make his vision concrete by spread socialist revolutions across the
establishing their international organization. world.
● The Socialist International (SI) was a
union of European socialist and labor
parties established in Paris in 1889. Comintern (Communist International)
Although short- lived, the SI's achievements
included the declaration of May 1 as Labor
Dayand the creation of an International ● To encourage these socialist revolutions
Women's Day. Most importantly, it initiated across the world, Lenin established the
the successful campaign for an 8-hour Communist International (Comintern) in
workday. 1919. The Comintern served as the central
● The SI collapsed during World War I as body for directing Communist parties all
the member parties refused or were unable over the world.
to join the internationalist efforts to fight for ● This International was not only more
the war. Many of these sister parties even radical than the Socialist International, it
ended up fighting each other. It was a was also less democratic because it
confirmation of Marx's warning: when followed closely the top-down governance
workers and their organizations take the of the Bolsheviks.
side of their countries instead of each other, ● Many of the world's states feared the
their long-term interests are compromised Comintern, believing that it was working in
secret to stir up revolutions in their countries
● Marx died in 1883, but his followers soon （which was true). A problem arose during
sought to make his vision concrete by
World War II when the Soviet Union joined ● Internationalism is just one window
the Allied Powers in 1941. in comparison to the broader
● The United States and the United phenomenon of globalization
Kingdom would, of course, not trust the ● Internationalism - a crucial aspect
Soviet Union in their fight against Hitler's of globalization, since global
Germany. These countries wondered if the interactions are heightened by the
Soviet Union was trying to promote increased interdependence of states
revolutions in their backyards. To appease ● Increased interdependence of
his allies, Lenin's successor, Joseph Stalin, states manifested not just through
dissolved the Comintern in 1943. state– to-state relations but
international relations are also
facilitated by international
Joseph Stalin and the Coinform
organizations that promote global
norms and policies
● United Nations - the most
● After the war, however, Stalin
prominent example.
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 Europe 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 rise of the United Nations as the center
of global governance.

CONCLUSION
● Tracing the roots of international
system by a short history of
internationalism