LESSON 2 STRUCTURES OF GLOBALIZATION.pptx

The Contemporary World.

1. STRUCTURES OF GLOBALIZATION The Global Economy

2. Lesson Objectives Define economic globalization Identify the actors that facilitate economic globalization Define the modern world system Articulate a stance on global economic integration

3. What is Global Economy? It denotes that the economies of various countries are more interconnected from extraction, production, distribution, consumption, to disposal of goods and services ( Carf and Schiliro , 2008).

4. Economic Globalization… - economic globalization goes beyond internalization as it involves the integration of functions and processes of economic activities . ( Dicken , 2004)

5. What is Economic Globalization ? It driven by the “growing scale of cross-border trade of commodities and services” ( Shangquan , 2000) Focus on increasing economic trade interrelations among countries. (Steger, 2010; Al- Rodhan , et.al 2006; Shangquan , 2000)

6. What is Economic Globalization ? Governed by neoliberal principles with the role of the market as central driver of economic activities with less government interventions (Martin Schumann & Camiller , 1997). Entails global restructuring and readjustments where developed countries play a dominant role ( Sungquan , 2000)

7. What is Economic Globalization ? It is the expansion of national economies, the global market driven by modern technologies and institutional set ups that promote faster and easier flow of goods and capital ( Sugden and Wilsn , 2005).

8. What is Economic Integration ? A process of combining or increasing the interconnectivity of national economies to the regional or global economies (Clark et al., 2018) Requires efficient management of economic operations from different areas in the world. innovations in transport logistics modernization of communication and transport system Policies support integration of different process along the globe

9. Actors that Facilitates Economic Globalization

10. Non-state Actors International Economic Organizations Help to facilitate trade and development discussions among various states .

11. International Monetary Fund (IMF ) international organization composed of 183 countries. It aims to promote international monetary cooperation and exchange stability , foster economic growth and high employment , provide short-term financial assistance to countries to help ease balance of payments and adjustments . (IMF, 2019)

12. World Bank (WB ) Organization for Economic Cooperation and Development (OECD)

13. Regional Organizations Association of Southeast Asian Nations (ASEAN) North American Free Trade Agreement (NAFTA) - promote regional agreement and standards that facilitate better trade and exchange of knowledge, human resources, and regional cooperation.

14. G8 and G20 an advisory organizations that discuss current economic and political problems and transfer the ideas from the group’s forum to national legislative regulations ( Shangquan , 2000:280)

15. G8 consists of eight countries with major industrial economies of the world which brought together for consultation and policy coordination at the highest level. CANADA FRANCE GERMANY ITALY JAPAN RUSSIA UNITED KINGDOM USA

16. G20 has a broader mandate to address issues related to trade, development, and political stability. It consists of the following countries ARGENTINA AUSTRALIA BRAZIL CANADA CHINA FRANCE GERMANY INDIA INDONESIA ITALY JAPAN MEXICO RUSSIA SAUDI ARABIA SOUTH AFRICA SOUTH KOREA TURKEY UK USA

17. 2. Multinational Companies (MNCs) - considered to be the main carrier of economic globalization ( Shangquan , 2000; 2). - started to emerge during WWII when US industrial production increased by 44% (Strange, 1996). 1996 – 44, 000 MNCs in the world with 280,000 overseas subsidiaries and branch offices 2006 – 88,000 MNCs identified (UNCTAD 2007)

18. 3. Central Banks other prime movers of economic globalization; considered one of the most powerful institutions in the world of economy as they can leas economic development.

19. 4. Global Civil Society major driver of economic globalization. is a system of nongovernment institutions that operate across geographical borders and organize and mobilize for a common issue or cause (Keane, 2003).

20. composed of either individuals or group of individuals disadvantaged by the effects of the globalization of the world economy as they protest and seek alternatives. In 1992, global civil society has made its mark in global development during UN Conference on Environment and Development.

21. What is the Modern World System? the seminal work of Immanuel Wallerstein on the world-system theory in (1974) which recognizes that social and economic change is not only endogenous to a county, but is affected by its interaction to exogenous institutions, thus the focus on world-systems (Chase-Dunn, 2018). Endogenous – variables inside or exist within the model of economic model Exogenous – variables exist outside the economic model or system of analysis.

22. constitutes a social system composed of boundaries, structures, member groups, rules of legitimation, and coherence. The modern world system is based on the theory of Wallerstein which posited that the global economy is divided into the core, semi-periphery , and periphery. The core is the center of economic activities where most of the population lives and economic institutions and services are based. However, majority of the raw materials and productions are done or sourced out in the periphery . The semi-periphery areas serve as distributors or add value to the raw materials by processing them for the core areas.

23. CORE – this refers to the countries with the highest levels of economic power. European North American Australian Countries PERIPHERY - refers to the countries that have low levels of economic development. Africa Asia Central America SEMI-PERIPHERY – refers to countries who are in a transition stage between the core and periphery. Newly Industrialized Countries (NICs) of Asia

24. Lesson3 The Global Interstate System

25. Lesson Objectives Explain the effects of globalization on governments; Identify the institutions that govern international relations; and Differentiate internationalism from globalism

26. Global Interstate System – is an institutional arrangement of governance that addresses regional or globalized issues that go beyond the scope of a nation-state. Internationalism – puts emphasis on diversity and celebrates multiculturalism. Globalism – focuses more on the economic aspect of the exchanges among countries and society

27. Interstate System System of unequally powerful and competing states in which no single state is capable of imposing control on all others. These states are in interaction with one another in a set of shifting alliance and wars and changes in relative power of states upsets any temporary set of alliances, leading to restructuring of the balance power. - Is the form of governance for a globalization.

28. Effects of Globalization on Governments World becomes more interconnected through politics, trade, communications, the role of nation-states and government. National and local policies are not only based on local context but also on international and global realities. E.g. Montreal Protocol

29. The Montreal Protocol signed on August 26, 1987 by 46 countries. an international treaty aimed at protecting the ozone layer. It addresses the production and consumption of substances that deplete the ozone layer, such as chlorofluorocarbons (CFCs) and other ozone-depleting chemicals. The protocol has been successful in phasing out the use of many harmful substances, contributing to the recovery of the ozone layer and mitigating environmental and health risks.

30. Local governments would like to attract major global investors in their community by setting up for instance their manufacturing firm in the area. It entails converting tracks of agricultural land to an industrial zone. Global corporation is also demand lower taxes and lower income wage in order to finalize their investment in the area.

31. Institutions that Governs Globalization 1. UNITED NATIONS (UN) – the facilitator of global governance with 192 states members. (Meyer, 2011) 2. REGIONAL COMMISSIONS – group of officials from different countries that instruct and debate, in charge of making certain law that promulgate certain rights for economic and social development. (CEPAL et al., 2015).

32. Example of Regional Commissions are as follows: Economic Commission for Africa (ECA) Economic Commission for Europe ( ECE) Economic Commission for Latin American and the Carribean ( ECLAC) Economic and Social Commission for Asia and the Pacific ( ESCAP) Economic and Social Commission for Western Asia (ESCWA)

33. 3. WORLD BANK – an international financial institution that provides loans to countries of the world for capital projects. Established in 1944 during Bretton Woods Conference. Other members: International Bank for Reconstruction and Development (IRDB) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA)