Lecture I in the subject Contemporary World.pptx

The Contemporary World

1. THE CONTEMPORARY WORLD Irish Keith A. Villanueva

2. GLOBALIZATION FROM DIFFERENT PERSPECTIVES Nowadays people view globalization as primarily an economic process that affects the integration of national products to the world markets . Others may refer this to the continuing integration of technological processes to many countries and the uprising of business from the developed, developing and under develop countries . Definitions of globalization by academics is differ from the journalist and to the political activist considering they view globalization in a broader terms.

3. In general term, globalization refers to the development of global or worldwide business activities, competition and markets and the increasing global interdependence of national economies . Other scholars believe that globalization is the process by which the world, previously isolated through physical and technological distance, becomes increasingly interconnected. It is manifested by the increase in interaction between peoples around the world that involves the sharing of ideas, cultures, goods, services and investment.

4. PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION Globalization is about the Liberalization and Global Integration of Markets. This is anchored in the neo-liberal ideal of the self-regulating market as the normative basis for a future global order . According to this, the vital functions of the free market- its rationality and efficiency , as well as its alleged ability to bring about greater social integration and material progress -can only be realized in a democratic society that values and protects individual freedom. (Steger, 2005)

5. Globalization is Inevitable and Irreversible. According to the market-globalist, globalization reflects the spread of irreversible market forces driven by technological innovations that make the global integration of national economies inevitable.(Steger, 2005)

6. Nobody is in Charge of Globalism Globalization hinges on the classical liberal concept of the self-regulating market . According to Rebert Hormats (1998) vice chairman of Goldman Sachs International, emphasized that, t he great beauty of globalization is that no one is in control. The great beauty of globalization is not controlled by any individual, any government, any institution (Steger, 2005 ).

7. Globalization benefits everyone in the long run This lies at the heart of market globalism which is unpacked on in material terms such as economic growth and prosperity. In terms of the globalism concept, it taps not only liberalism progressive worldview, but also draws on the powerful socialist vision of establishing economic paradise on earth (Steger, 2005 ). Globalization Furthers the Spread of Democracy in the World - This links ‘globalization’ and ‘markets” to the concept of democracy which plays a significant role in liberalism , conservatism, and socialism. Globalist tend to treat freedom, free markets, free trade and democracy as synonymous terms.

8. DEFINITION OF ECONOMIC GLOBALIZATION The International Monetary Fund (IMF) regards “economic globalization” as a historical process representing the result of human innovation and technological progress . It is characterized by increasing integration of economies around the world through the movement of goods, services, and capital across borders.

9. THE MODERN WORLD SYSTEM One of the famous works that captures the socio-historical and economic nexus of pre-capitalist economies and the present world was that of Immanuel Wallerstein’s research on the modern world system. His analysis focused on the broad economic entity with a division of labor that is not circumscribed by political or cultural boundaries. His idea of the world system is larger than workers, classes, or even states. Through the global economic activity, countries around the world have been divided according to their economic power in the global arena.

10. The modern world-system is also known as the modern capitalist world economy . It is a system which relies on economic domination. It encompasses many states and a built-in process of economic stabilization. This means that it is economic forces (and the economy of the world) that pull people, states, and societies toward the arena of worldwide economic transactions.

11. THE THREE LEVEL HIERARCHY OF THE MODERN CAPITALIST WORLD-ECONOMY Not all countries or areas are equal in the modern world-system according to Wallerstein . A three-level hierarchy is a remarkable feature of the modern capitalist world-economy.

12. Based on the Wallerstein’s World System Theory Model, the world is now divided into three categories and thereby creating the worldwide division of labor. These are: Core – These are areas that dominate the capitalist world-economy and exploit the rest of the system (e.g., US, Japan and Germany). This means that the core regions benefited the most from the capitalist world economy. Periphery – These are areas that provide raw materials to the core and are heavily exploited (e.g., many countries in African region, Eastern Europe (especially Poland) and Latin America). These areas lacked strong central governments or were controlled by other states, exported raw materials to the core, and relied on coercive labor practices. The core expropriated much of the capital surplus generated by the periphery through unequal trade relations.

13. Semi-periphery – It is a residual category that encompasses a set of regions somewhere between exploiting and the exploited (e.g., India, China, Indonesia, Mexico, Iran and Brazil). They often also served as buffers between the core and the peripheries.