Interrogating-Globalization in the Contemporary World

The Contemporary World

1. INTERROGATING
GLOBALIZATION
LESSON 2

2. 01 00 02
ERICA MAE P. CARAQUEL
Reporters
John Michael P. Palomares

3. LEARN MORE
LESSON 2
LESSON OBJECTIVES
After this lesson, you should be able to:
I.Discusseconomicglobalizationasacomplexprocess
responsibleforenormousglobalandlocalChanges;
II.Explaineconomicglobalization'saccompanying
culturalandpoliticalglobalization;
III.Articulatetheassumptionsbehindglobalization;
and
IV.Criticallyevaluatetheimpactsofglobalization
especiallyforpoorcountries.

4. LESSON 2
Anideaprescribedpathtoattain
developmentthroughcertainsetof
activities,accordingtoadefinedvision
(bellù,2011)
Development paradigms
Interrogatingtoanalyzeanideaorbelief,especiallyby
thoroughlyanddispassionatelyquestioningitsunderlying
assumptions.
Globalizationisthewordusedtodescribethegrowing
interdependenceoftheworld’seconomies,cultures,populations
broughtaboutbycross-bordertradeingoodsandservices,
technology,flowsofinvestment,people,andinformation.Itis
mainlyconceptualizedasintensifiedtransferenceorexchangeof
thingsacrossexistingboundaries.

5. LESSON 2
DatuKayloBontulan
Hetalksaboutaproposedbusinessinvestmentintheir
ancestrallandthatdisplaceindigenouscommunities.
“Ifthis(investment)happens,wecannotcultivateourlands
anymore.Wecannotgrowlocalcropsonourancestral
domain.Theywillonlyforceustoevacuateandusethe
militarywhowillnotthinktokillustwiceifwestoptheir
project”.
SalugpunganTaTanuIgkanugon,DatuKayloBontulan,
Talaingkod(Velez,2018)
A MANABO LEADER QUOTE

6. LESSON 2
EconomicGlobalization
•Isacomplexglobalprocessofexpandingthe
marketeconomicsystemallthroughoutthe
world.
•Itisacorporate-drivenprocessofenhanced
transnationalexchangeofproductsservices,
technologies,andcapital,creatingandan
increasedinterdependenceofworldeconomies.

7. Lesson2
Flows in the Age of Globalization
Important aspects of globalization include global trading, capital
flows, and movement of people (IMF, 2000).

8. Lesson 2
TRADING
01
Global trading
concerns and
importation and
exportation.
02
International trading
the economic changes and deals
between countries is enabled by
international fiscal payments where
private banks and the central banks of
particular nations play important roles (
Encyclopedia Britannica, n.d.).

9. LESSON 2
•Means circulation of capital
between countries with different
currencies.
•One manifestation of capital
Movements is foreign flows
•Transnational corporation,
businesses that operate in more than
one country, primary undertake
foreign direct investment.
Capital Movement Movement of people
Peoplecanmigratetoother
countriesinsearchabetter
employmentopportunities.

10. LESSON 2
Political Globalization Cultural Globalization
Itreferstotheincreasing
contactbetweenpeopleand
theircultures-theirideas
theirvalues,theirwaysof
life.
The enlargement of the
international political system
and its establishment, where
inter-regional dealings
including trade, are managed.

11. Assumption Behind the Pursuit of Globalization
As a paradigm of the development globalization of words and certain assumption about a desirable
economy and development however ,this assumption must be tested in real-world.
Assumption Behind Globalization Critiques to the Assumptions
Rapid economic growth will lead to development.Economic growth is only one aspect of development,
other aspiration are:
• Achieve both material needs and broader social
objectives;
• Social and economic justice and equity;
• self reliance;
• Welfare, adequate provision of basic services; and
• equitable distribution of opportunities, income,
and wealth.
Trading will bring prosperity Trading benefits some more than others

12. Poor countries will benefit from borrowed funds. Borrowing of poor countries are coupled with
condition (SAPs), which make countries compromise
spending for social services and welfare.
Poor countries need to catch up with rich countries
by implementing economic policies toward
economic integration.
It will be difficult for poor countries to catch up
because they are caught in unequal exchanges and
underdevelopment.
Removal of tariffs, quota can ease global trading
and will lead to economic integration (Toward
prosperity)
Reduction of tariffs in the Philippines since the
1980s led to unfair competition of local industries
with imports. Industries direly affected by tariffs
cuts we're paper products, textiles, ceramics, rubber
products, furniture, wood, shoes and leather goods.

13. Institutions and
Actors Shaping
Economic
Globalization

14. Institutions and Actors Shaping Economic
Globalization
●Thepursuitoffast-pacedinternationaleconomictransactionsaswellasmovementof
peopleandknowledgeisdrivenbycertainactors,inengagementwithmanysectors.
●Globalizationisnotarandomphenomenon.
●Internationalbusinessescalledtransnationalcorporationsareimportantplayersin
globalization.
●Otherimportantactorsandinstitutionsensuringglobalizationaretheinternational
financialandtradeinstitutions,aswellastheUnitedNationsagenciesandregional
organizations,suchastheASEAN.
Therolesoftheinternationalfinancialandtradeinstitutions,responsible
mainlyforensuringeconomicglobalization,arediscussedbriefly:

15. Table 1. International financial and trade institutions, the World
Bank, IMF, and WTO.
OrganizationRoleInEconomicGlobalization
World Bank •Facilitate investment of capital for member countries
•Fund large-scale projects by providing loans for member countries
•Implement the Structural Adjustment Policies (SAPS) for countries
borrowing from the World Bank. SAPs are programs imposed on poor
countries that require their governments to:
-reduce spending for social services such as education, health, and
price subsidies;
-prioritize repaying debts;
-increase exports, provide subsidies for foreign export oriented firms;
and
-remove tariffs for imports.

16. International
Monetary Fund
(IMF)
•Provide short-term emergency loans
•Help bring enormous flow of foreign money through
loans
and speculative investment.
World Trade
Organization
(WTO)
•Create rules for global trade and investment
•Aim to reduce tariffs
•Create agreements for member countries regarding
multilateral policies that push governments to relax
regulations on environment, food safety, and product
quality
•Encourage countries to deregulate economies
Table 1. International financial and trade institutions, the
World Bank, IMF, and WTO.

17. •TheWorldBank,IMF,andtheWTOaimtomakesurethat
quickerandeasiermovementofproducts,capital,andtrading
betweencountriesisachievedbyimplementinginternational
policies,reforms,andagreements.
•Oneobjectiveofglobalfinancialandtradinginstitutionsisto
enforcecommontradingandfinancialflowstandardsand
policiestoallcountries.
•Anothercommongoalisto"deregulate"firms(deregulation).
Toderegulatebusinessesistoreducethecontrolof
governmentoverbusinesses,makingthemmorepowerfulin
implementingtheirvisions,goals,andoperations.

18. •Economic deregulation is met with disapproval from different
groups such as labor organizations environmental groups,
indigenous peoples, and even consumer groups.
•Lessening government's control over businesses led to
outcomes such a neglect of environment, low wages and
unstable employment, under servicing of consumers, and
privatizing common resources.
The Impacts of Globalization

19. World Bank, IMF, and Debts
●Supportersofglobalizationcarryseveralassumptionsaboutit.
Assumptionsneedtobescrutinizedagainstreal-lifeconditions.
●Proponentsandguardiansofglobalization,suchastheIMF,acknowledge
povertyandinequalityexistingalongsideglobalizedeconomies.
●Internationalproductionisconceivedtoincreasejobscreatedacross
countries.
●Poorcountriesneedtocatchup.Butcountriesintheworldaredivided
accordingtoitsroleandpowerintheglobalsystem.

20. CONTRASTING EVIDENCE OF POSITIVE EFFECTS
Increase Income More Employment
Less Poverty

21. Globalization Have Losers and Gainers.
●Increased trading may result to wider choices of consumer
goods in the market. However, international trading produces
varying results. Restructuring of economy through fast-paced
flux of capital across different countries has impacts on places
and social relations.
●These kinds of global interactions produce uneven
development.
●Unequal playing field for local producers and foreign producers
from developed countries lead to losses for local producers.

22. The Effects of Global Trading on the Philippine Local Economy
●Becauseofenhancedglobaltrading,cheapimportedvegetablesflood
thelocalmarket.Localconsumersandbusinessesfinditcheaperto
buyimportedagriculturalproductsthanlocallyproducedgoods.
●Localproducersareunabletocompetewiththemodernandhighly-
supportedvegetableproductionfromdevelopedcountriessuchas
China,Australia,NewZealand,andtheNetherlands.

23. The Effects of Global Trading on the Philippine Local Economy
●Advertisedtotheworldasaremedytoallproblems,
globalizationcomesshort.Ithasnotraisedthepoorfrom
poverty.
●Ithashindereddemocracyandsocialjustice;ithasdamaged
smallcommunitiesanddisplacedfarmersfromtheirlands.
●Additionally,ithasspedupthelargestenvironmental
degradationknowntomankind.

24. •An important impact attributed to globalization is
the nearly six-fold increase in the income
measured in per capita GDP for the richest 25
percent of the world population in the 20th
century.
•However, the poor populations did not
experience this exponential economic growth.
Income inequality worsened.
ALTERNATIVES TO ECONOMIC
GLOBALIZATION

25. >
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Presented by: Erica Mae P. Caraquel
John Michael P. Palomares