CONWORLD 2nd Year X 1st Semester
CONWORLD 2nd Year X 1st Semester
CONWORLD 2nd Year X 1st Semester
Underplays globalization : internationalization (trading) or regionalization According to the IMF , “economic globalization” is the result of a historical
Dominant view in IR : Realism ; Methodological Nationalism and Territorialism process representing the result of human innovation and technological progress
Certain types of Marxism or Structuralism adopt a strongly - state - centric Characterized by the increasing integration of economies around the world
perspective through the movement of goods , services , and capital across borders
Rise of Anti - Global Authoritarian Populism / Nativism
The International Trading System
3) Critical or Transformational Perspective
The Silk Road as the oldest international trade route --- a network of pathways
Recognizes dissolution of old structures and boundaries (states , economies , in the ancient world that spanned from China to what is now the Middle East
communities) and to Europe. (130 B.C. to 1453 B.C.)
“The state as a space of flows” : power and politics are reconfigured ; they flow The Silk Road though international is not truly “global” because it had no ocean
through , across and around territorial boundaries routes that could reach the American continent
Speed and magnitude of changes
Mobility , hybridity , complexity When did full economic globalization begin?
Global - local nexus = “Think Globally , Act Globally”
Emphasis on unevenness and new hierarchies : globalization of superficiality (Fr. According to Dennis O , Flynn and Arturo Giraldez , the age of globalization
Adolfo Nicolas) ; globalization of indifference (Pope Francis) began when “all important populated continents began to exchange products
continuously --- both with each other directly and indirectly via other continents
Globalization versus Globalism 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
Globalization represents the many processes that allow for the expansion and the first time the Americas connected to Asian trading routes
intensification of Global connections
Globalism is a widespread belief among the powerful people that the global *insert the European View of the Age of Mercantilism*
integration of economic markets is beneficial for everyone , since it spreads
freedom and democracy across the world The Gold Standard
Multiple Globalization versus Globalization as a single process If you want to add more money , you must add more gold
A system in which a currency is backed by gold reserves. Each unit of currency is
Arjun Appadurai asserts that different kinds of globalization occur on multiple worth a specific weight in gold
and intersecting dimensions of integration that he calls “scapes” PROS :
Long - term price stability.
Ethnoscape - refers to the global movement of people It is difficult for government to inflate prices.
Mediascape - refers to the flow of culture Fixed international exchange rates between trading nations reduces
Technoscape - refers to the circulation of mechanical goods and software uncertainty.
Ideoscape - refers to the diffusion and sharing of political ideas CONS :
Financescape - refers to the global circulation of money A disadvantage for countries that do not produce gold.
May limit economic growth.
Economic Globalization and The Global Economy Economists say it can prolong economic recessions.
Limits how central banks can respond to economic crisis.
Is there a global economic system? “Money backed by Gold”
Open Trade System in 1867 as facilitated by United Kingdom , United States and The Washington Consensus
other European countries adopted the GOLD STANDARD at an international
monetary conference in Paris Neo - liberal policies prescribed by the US Treasury Department , the IMF - WB ,
Established a common system as basis for currency prices and a fixed exchange WTO and the GATT came to be called as the Washington Consensus.
rate system --- all based on the value of gold (1980’s - 2000’s)
The gold standard proved to be a very restrictive system as it compelled Advocated minimal government spending to reduce government’s debt ;
countries to back their currencies with fixed gold reserves Privatization of government services ;
Gold as the International Monetary System (IMS). Monetary authorities are Reduction of tariffs
obliged to exchange their national currencies for gold at the official exchange Trade liberalization or opening up one’s economy as the key driver to achieve
rate economic progress
Advocates of the Neo - liberal policies like US President Ronald Reagan and
The Bretton Woods System British Prime Minister Margaret Thatcher
Both argued that economies should be run like households ( e.g. reduction of
Create a global economic system government expenses or belt tightening )
Establishment of the International Bank for Reconstruction and Development The Global Financial Crisis of 2007 - 2008 challenges the potency and
(IBRD or World Bank) to cater for the post war reconstruction projects effectiveness of Neo - Liberalism
And the International Monetary Fund (IMF) as the global lender of last resort
Current Status of Economic Globalization
GATT : General Agreement on Tariffs and Trade
Economic Globalization is an uneven process
Several countries embraced deeper global economic integration through the It cannot be denied that the Washington Consensus has nurtured a system
GATT in 1947. GATT sought to reduce tariffs and other hindrances to free trade where the world or economies have become too integrated. Some of its
prescriptions are necessary for countries to develop in the contemporary world
WTO : World Trade Organization
Countries % of Global Exports
The World Trade Organization (WTO) is the only international organization US , Japan and European Union 65%
dealing with the global rules of trade between nations. Its main function is to Developing countries 29%
ensure that trade flows as smoothly , predictably and freely as possible By 2011 : more countries opened up
their economies
Emergence of Neo - Liberalism Developed countries 45%
Developing China including the 51%
Oil Embargo and Stock Markets crashed in 1973 - 1974 Philippines , China , Argentina and Brazil
Keynesian Economic Theory versus Neo - Liberalism
(Friedrich Hayek and Milton Friedman) According to the IMF , the global per capita GDP rose over five - fold in the
Hayek and Milton argued that the government’s practice of pouring money into second - half of the 20th century
their economies had caused inflation by increasing demand for goods without This growth created the large Asian economies like Japan , China , Korea ,
necessarily increasingly supply Hong Kong , Singapore
Both argued that government intervention in economies distort the proper
functioning of the market. Hence , the birth of Neo - Liberalism
The downside part : Treaty of Westphalia
Developed countries maintained selective protectionist policies. They refuse to Ended the Thirty Years’ War signed by the major continental powers of Europe
lift policies that safeguard their primary products that could similarly in 1648
overwhelmed by imports from the developing countries. Designed a system that would respect the sovereignty of each state
Example : Japan’s refusal of rice imports It provided stability in Europe
US protectionist policy on its sugar industry
Trade imbalances characterize economic relations between developed and The Rise of Napoleon Bonaparte
developing countries The rise of Napoleon challenged the Sovereignty of nation-states challenged
The beneficiaries of global commerce have been mainly transnational Westphalian system by the concept of supra - nationalism
corporations (TNC’s) and NOT governments
TNC’s gain more profits while host countries are made to loosen tax laws , lower How? Bonaparte believed in spreading
their labor standards and wages to attract foreign investors the principles of the French Revolution
Governments more often bend their own environmental laws to attract --- liberty , equality , fraternity
investors to the detriment of their finite resources like oil , coal , minerals
Napoleonic Wars 1803 - 1815 challenged
Global Governance the power of kings , nobility , and religion
in Europe
Can you imagine a world without international order? French Hegemony Implemented the Napoleon Code
“Men within each state are subject to a common government , sovereign Freedom of religion
states in their mutual relations are not.”
Promoted meritocracy in government
Theorizing a World of Anarchy service
This ‘anarchy problematique’ continues to this day to play its part in seeking to Restoration of the Westphalian System
understand the manner in which international relations functions in the absence Battle of Waterloo in 1815 Anglo and Prussian armies defeated
of a central government and the manner in which cooperation manifests itself Napoleon
within an anarchical framework Establishment of an alliance of “great
powers” known as the CONCERT of
Roots of Interstate System EUROPE (UK , Austria , Russia , Prussia)
The desire for greater unity and cooperation among nation-states Karl Marx
International Organization
Most powerful
Military intervention
Has 15 member states
5 permanent ones :
China
France
Russia
United Kingdom
United States of America
Has 54 members
Principal body for coordination
Policy review policy dialogue
Reco on social and environmental issues as well as the implementation of
internationally agreed development goals
The Secretariat