SS 1D - midterms Flashcards
1
Q
- Decision making of private individuals
- Economy under the will and interest of the individuals.
- Economic freedom to purchase and sell products, services, and properties.
- This condition is not planned by a single person or group that has the ability to manipulate or direct the economy solely.
- It promotes competition among business
and firms
A
MARKET ECONOMY
2
Q
- A central economic planning body handles the entire decision making.
- The quality and quantity of goods and services produced is based on the decision of the government.
- Production quantity is dictated, consumer behavior is directed, and market operation is controlled by a single authority.
- Its objective is to mobilize resources for the common good of the public and for the interest of the nation.
- Private individuals have no say in the economic operation.
A
COMMAND ECONOMY
3
Q
- Market-driven economies
- Combination of market and command economies.
- Some sectors are under the directions of the private individuals while other aspects of the economy are left within the guidance of the government.
- State can take over the ownership and operation of a private company for the purpose of maintaining the interest of the nation.
A
MIXED ECONOMY
4
Q
3 ECONOMIC SYSTEMS
A
Market Economy
* Hongkong
* New Zealand
* Australia
* Switzerland
Command Economy
* North Korea
* Cuba
* Russia
* China
Mixed Economy
* Philippines
* United States
* United Kingdom
* France
5
Q
Is the process and the system when goods, commodities, services cross national economy, and boundaries in exchange for money or goods of another country (Balaam and Veseth, 2008). Global trade has grown dramatically since the post-cold war era because of increasing demand of goods and services and countries. This global norm reflects growing practice of internationalizing and globalizing local products and services.
A
International Trade
6
Q
TRADE THEORIES
A
- Descriptive Theory
- Prescriptive Theory
7
Q
- it deals with the natural order and the movement of trade. It describes the pattern of trade under the idea of laissez faire, a French term which means “leave alone”. It refers to the notion that individuals are best economic agents to solve the problems through invisible hand rather than government policies. It also addresses the questions which product to trade, how much product to offer and produce, and which country to trade in the absence of government restrictions.
A
Descriptive Theory
8
Q
- it prescribes whether government, an important economic institution, should interfere and restrict with the movement of goods and services. This theory views government to have participation in deciding which countries to alter the amount, composition, and direction of goods.
A
Prescriptive Theory
9
Q
3 PERSPECTIVES ON INTERNATIONAL TRADE
A
- Economic Liberals
- Mercantilists
- Structuralists
10
Q
For David Ricardo, his influential work, Law of Comparative Advantage explains that free trade efficiency is attainable if two countries can produce more goods and trade products separately. The advantage of this theory in international trade is deriving principle of specialization and division of labor of Adam Smith (Nau, 2009). Counties have different resources and talents, they are better in performing in that economic activity than other economic activities.
A
Economic Liberals
11
Q
explain the importance of free trade and the role of individual’s preference in choosing economic activity. It includes making decision, and choices on comparing the costs of products to be produced and traded, the availability of the product, and the efficiency of producing and buying products.
A
Economic liberals
12
Q
is an economic theory emerged from about 1500-1800. This period was the emerging eras of nation-states and the formation of more central governments. This system flourished due to the following reasons:
a. Higher Exports than Imports – Governments enforced policies to ensure exports exceeded imports, supporting trade goals and strengthening colonial rule.
b. Control Over High-Value Goods – Colonies were restricted from producing high-value goods, ensuring monopolization by colonial powers.
c. Colonial Benefits – Mercantilism maintained colonial power by controlling the economy and maximizing benefits for the ruling nation.
A
Mercantilism
13
Q
The Modern World System (MWS) theory developed by Immanuel Wallerstein, explain the contact of economies between core, semi-peripheral, and peripheral countries in the world. The core states have the absolute advantage over the other through unequal exchange and extraction of raw materials from the periphery and semi-periphery. This system as part on the structure of the global capitalism, involves exploitation, and transformation in some ways.
A
Structuralists
14
Q
Why Countries Engage in International Trade?
A
- Use of exess capacity in demand
- cost reduction and increase of profit
- cheaper suppies
- addiction to product line
- reduction of risk
- foreign policy tool
15
Q
. The inadequate domestic demand pushes business organization to expand their market base outside the national territory. This is usually done by the firms and companies that have the resources and capacity to operate in transnational market. Giant brands like Nestle, Pepsi, McDonald’s, Toyota, and Starbucks are known for expanding their operations outside their home country.
A
Use of Excess Capacity in Demand
16
Q
. A market leader for a particular good or service may garner a lower production cost by increasing its market in global rather than domestic. This enables a firm to increase its profit while reducing its operating costs.
A
Cost Reduction and Increase of Profit
17
Q
. a country imports goods from other countries because of inexpensive raw materials and supplies used for production. The availability of buying cheaper materials from other countries lowers the costs in production which might result an increase in the profit of businesses.
A
Cheaper Supplies
18
Q
. Importing products is seen as an alternative to countries that are vulnerable to supply shortage. These countries that have high volume of imported goods are economies that confront the demand and supply condition of the local market.
A
Reduction of Risk
19
Q
. The membership of a country to regional market integration and economic relationships is part of its foreign policy. Enhancing the economic and political affiliation of a country is very important in sustaining its international status in a global market.
A
Foreign Policy Tool
20
Q
The role of Multinational Corporation (MNCs) in the 21st is distinct and interesting to investigate. The movement of ideas, capital, investment, technology, and people are affected by the operations of MCNs. As the global economy is becoming complex and competitive, MCNs continue to offer innovations and new product and services. For several years, the term MCNs was used to refer to a firm operating in different countries around the world. Because of the magnitude of global production and networks, the term transnational corporation (TNC) became the more acceptable name. This refers to business organizations and firms that compete in regional or global markets. It operates in countries and makes investments in research, technology, facilities, distribution, and production.
A
Transnational Corporations
21
Q
can control and monopolize the global market especially if it has huge pool of resources making it one of the most powerful economic actors in the world. The number of TNCs from north and west has business operations in the south where cheap labor and raw material are available. TNCs are very powerful economic institutions because of their global influence in investment and network distribution. Sometimes, TNC is being compared to states in terms of value and power.
A
Transnational Corporations
22
Q
is designed to address and enhance the level of competitiveness of member economies in trade. Free trade is the primary consideration of regional economic integrations. Free Trade Area (FTA) is a trading bloc which involves the reduction of internal tariffs to zero of member economies while retaining different external tariffs. This policy aims to promote free flow of goods and services as well as to increase the volume of trade within the region.
However, there are criticisms on FTAs like the unfair trade practice. Unfair Trade is the conduct of trade by a business fir or government that violates and breaks the international trade agreements that are unjustifiable and discriminatory. Examples of common trade practices are issues relating to price, labor, wages, health, and environmental concerns that failed to meet the regulatory standards of the body.
A
formation of economic integration
23
Q
In 1995, General Agreement on Tariffs and Trade (GATT) of the American government was replaced and succeeded by WTO with 151 members as of 2008 and accounts for 90% of the world’s trade. It is based in Geneva, Switzerland and leads by a director general selected by consensus among its members.
Primarily, WTO has the following main functions:
a. Implementation of the latest GATT agreements
b. A venue for trade negotiations
c. A dispute settlement body responsible for resolving trade problems
d. Review and assess national and international trade laws and policies
e. Assist members and developing economies by providing technical assistance and training programs
A
World Trade Organization (WTO)
24
Q
Officially called the International Bank for Reconstruction and Development (IBRD), or World Bank is an international agency with 189 member-countries operating in 130 countries worldwide. Formed by Bretton Woods agreement in 1944 to finance the reconstruction of war-torn countries brought by the devastation of World War II.
World Bank is composed of four associated agencies:
a. International Development Association (IDA). This agency focuses on poor and third world economies in the world by providing financial assistance and load program.
b. International Finance Corporation (IFC).
c. Multilateral Investment Guarantee Agency (MIGA).
d. International Settlement Centre of Investment Disputes (ISCID).
A
World Bank
25
IMF was created as the flagship institution of Bretton Woods agreement with 189-member countries. IMF is responsible in supervising exchange rate system, providing loan programs to economies experiencing from another country as well as indicates the economic operation like what it produces, consumes, and buys with its money
**International Monetary Fund (IMF)**
26
is a political economic regional organization of 28 member-economies in Europe. Founded in 1985, European Economic Community (EEC) was formed by six countries: Belgium, Germany, France, Italy, Luxembourg, and Netherlands. Since then, other European countries joined the regional bloc making it as Europe's most influential and powerful body.
EU is guided by its core values, considered as integral part in the way of life of its citizens. It believes on the following value orientation: (1) Human dignity, (2) freedom, (3) democracy, (4) equality, (5) rule of law, and (6) human rights.
**European Union (EU)**
27
was founded on August 1967 in Bangkok Thailand with Indonesia, Malaysia, Philippines, Singapore, and Thailand as its founding fathers. Brunei Darussalam, Vietnam, Myanmar, and Cambodia joined the organization making up today the 10 member-countries. The ASEAN Political-Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community are the three main pillars of ASEAN.
As stated in the Treaty of Amity and Cooperation in South East Asia (TAC) of 2976. The ASEAN Community functions under its six fundamental principles (ASEAN.org).
a. Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;
b. The right of every State to lead its national existence free from external interference, subversion or coercion;
c. Non-interference in the internal affairs of one another;
d. Settlement of differences or disputes by peaceful manner;
e. Renunciation of the threat or use of force; and
f. Effective cooperation among themselves
**Association of Southeast Asian Nations (ASEAN)**
28
refers to intensification and increasing level of interrelations among nations in the world. These structural processes raise the issue of state sovereignty, the growing implications of intergovernmental organizations, and the prospects of regional and international governance. (Steger, 2003). These features of globalization confront to the framework of the nation-state with the emergence of new conceptual views and grounds.
**Political globalization**
29
is a response on the actions of various stakeholders on finding out pressing global problems like climate change and issues on peace and security. The world has no global government and global authority. There are political and economic bodies operating worldwide but no single organization possesses a global authority in enforcing and compelling others to follow.
**global government**
30
. This term refers to domestic institutions and governments on how large-scale problems and public policy issues are being solved at a global level. It involves a range of actors including states, national and regional bodies that have the willingness and commitment to confront a specific problem (WHO, 2015). It involves management, authority, cooperation, and mechanisms that are aimed to attain certain goals. This international process is bounded by consensus and agreements where members are expected to perform based on the guidelines and policies.
**global governance**
31
**THREE EXISTING GAPS AND ISSUES IN GLOBAL GOVERNANCE**
* Jurisdiction Gap
* Incentive Gap
* Participation Gap
32
The lack of global governance in taking actions to problems affecting key sectors arises from the absence of authority. This involves the need to create power and jurisdiction to governments and international
organizations that have the commitment in confronting issues like unemployment, human rights, peace, and crimes.
**Jurisdiction Gap**
33
Global governance is formed with the participation of countries that have the interest to deal problem affecting their sovereignty. It is an issue between the rich and poor countries of the world because of uneven distribution of authority and control over decisions and policies.
**Incentive Gap**
34
Member-states sometimes disagree on issues that are harmful to their interests. They do not involve in decisions that are crucial to the economic and political welfare of their sovereignty
**Participation Gap**
35
means the system, or the form of practice employed by the state. Udayanskar (2012) identified two dimensions of political system. First, a country emphasizes the importance of individualism as opposed to collectivism. Second, a system in which a country is either democratic or totalitarian in its form of government.
**Political System**
36
* It is a political system that values the significance of individuals over collective goals.
* Freedom of the people is the primary consideration.
* Government values choices and preferences of its people at a very personal level.
* It is built in two elements: individual freedom and expression are important in the sense that individuals just like state have sovereignty; and the pursuit of economic interest among individuals.
**Individualism**
37
* It is a philosophy that stresses the importance of the collective goals over individual freedom and interests.
* The state, as the primary economic manager, views collective action as the best strategy in establishing the welfare and interest of the nation.
* According to Plato, social stratification must be built in order for the society and the entire economy and the government be managed properly and orderly.
**Collectivism**
38
* Democratic institutions and governance focus on the role individuals in political decision making.
* The practice of direct participation in modern societies involves representation, where individuals periodically elect someone who has the ability to represent them in the government.
* In a representative democracy, competitive elections occur where candidates freely compete for votes through conduct of fair and honest election.
* Elected officials are accountable for their actions in the government and operation of the state.
* Constitutional laws are provided to safeguard the welfare and interest of the people.
**Democracy**
39
* It is built on the idea that society and citizens have no right and freedom of expression.
* Totalitarian countries do not recognize the conduct of fair and honest elections, the presence of media, and civil liberties.
* Decision making of the state is exclusively on a single political party if not a ruler who has full control in the political, economic, and social affairs of its government.
**Totalitarianism**
40
* is the ultimate goal to contain and control other states and nations that do not enjoy much power are considered as powerless states in international arena.
* Realists define it as capabilities of a country o state like population of its people, resources, territory, economic, and military strengths (Chomsky, 2006; Nau, 2008).
* In a typical discourse, it is described as the ability of a person, group, or institution to affect the behavior of others against their will.
**Power**
41
The economic growth experienced by China and other emerging economies in the world are dependent on the American market. On the political angle, American military power is considered as the most highly valued military force in the world with billions of dollars annually spent by the government. Its military presence in some countries in Asia and Pacific, Middle East and Africa, Europe and South America is a remarkable manifestation of its control in global
defense operation. However, the global stability of power enjoyed by the Americans can only be sustained if it will employ the liberal values of freedom, democracy, and human rights (Balaam, and Veseth, 2008)
**Unilateralism**
42
**MULTILATERALISM**
three powers in international system
* bipolar
* tri-polar or tri-polarity
* multi-polar or multi-polarity
43
- it happens if there are only two great powers dominating the distribution of power. The Cold War era is fitting example of bipolarity, the global power was highly contested between US and USSR.
**Bipolar**
44
- exists if there are only three states dominating the distribution if global order. United States, Japan, and Europe were considered as potential powers during the Second World War. They controlled some areas under the respective military instruments and interests. In the area global economic power, Japan, China, and United States are the most favored nations identified by scholars as the three leading economic giants of modern time
**Tri-polar or tri-polarity**
45
- is situation when more states are involved in the distribution of global power. This geological condition is described as an alignment if the powerful and emerging powers in the world. The current situation of the globe could be described as Multipolar because of state
actors joining the prestige of superpowers. `Europe, China, Japan, Russia, United States`, and major alliances are key players in the distribution of
power.
**Multipolar or multi-polarity**
46
Isolationists believe that major powers and states exclude the use of force and military in the international system. War and attacking other nations are unethically acceptable in the international political economy. It is already enshrined in the international law. Realist-isolationist stresses that United States must disengage itself using military force over other military interests
**Isolationism**
47
is an international organization established in 1945 with the League of Nations as its original body. Currently, the organization
has 193-memberr states performing various capacities and divisions. As the world's most powerful binding political organization, UN can act on the issues confronting humanity in the 21st century such as peace and security, climate change, sustainable development, human rights, disarmament, terrorism,
humanitarian and health emergencies, gender equality, governance, food production, and more. UN operates worldwide in providing aids and support services to global problems in countries where it is needed.
**United Nations or UN**
48
**ORGANS OF UNITED NATIONS**
* General Assembly
* Security Council
* Economic and Social Council
* International court of Justice
* The Secretariat
* Trusteeship Council
49
- this is UNs main deliberative and decision-making body represented by all its 193 members. The assembly holds general debate from September - December in its headquarters in New York. Two thirds of vote are required to decide range of issues like peace and security, budget, and admission if new members to the organization
**General Assembly**
50
- it is responsible in the maintenance of peace and security. it has the power to impose sanctions or punish members or other bodies for the purpose of restoring international peace and security.
**Security Council**
51
. - commonly called as ECOSOC. its main function is to coordinate, review, and recommend policies relating to economic, social and environmental issues. It serves as the main agency of UN in monitoring and evaluating key results in sustainable development.
**Economic and Social Council**
52
- ICJ is the principal body or court of UN. Its role includes setting legal disputes among concerned states and provides opinions on legal matters. This is the only UN organ that operates outside United States with headquarters in the Peace Palace, Netherlands
**International Court of Justice**
53
- it is headed by the UN Secretary - General who sits as its Chief Administrative Officer at the appointment of the secretary general is done through the recommendation of the Security Council for a five-year term. this organ is responsible for the day-to-day work and operation of the UN including its peacekeeping mission and thousands of international staff stationed in different countries.
**The Secretariat**
54
was formed initially as a political association, and not a military alliance. Realists argue that during its proposal in 1949, the idea of collective security arrangement was the main feature of NATO. Its purpose was not directed against the threat of Soviet Union but to strengthen political commitment of
governments in Western Europe. However, liberalists point out the belief that NATO was established to back up and save the economic and political problems of Europe from the damages of war. The economic alliances of Europe's powerful countries transformed the region as a major hub in industrialization. Its development transformed NATO as a conventional military alliance and protected Europe from the threat of Soviet Union.
**North Atlantic Treaty Organization**
55
**What is globalization?**
*** Broad and Inclusive**
Globalization means the onset of the borderless world.
*** Narrow and Exclusive**
The characteristics of the globalization trend include the internationalizing of production, the new international division of labor, new migratory movements from South to North, the new competitive environment that accelerates these process and the internationalizing of the state…making states into agencies of the globalizing world.
56
- refers to a `multidimensional set of social processes` that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same fostering in people a growing awareness of deepening connections between the local and the distant (McGrew, 2003).
- as a phenomenon `gave rise to the interconnectedness of human society` that replaced the sovereign state system with multilateral system of global governance (Justine Rosenberg).
**Globalization**
57
- From the lens of **`Ritzer (2008)`,** he described this phenomenon as the `spread of worldwide practices, relations, consciousness, and organization of social life`. The interconnectedness of social segments from macro institutions to the smallest sectors of the world have coincided the fabrics of globalization.
- as a theory lies in the works of many 19th and 20th century scholars and intellectuals like **Karl Marx**, **MacKinder**, and **Robertson** who began to introduce the term **“`globality`”**.
**Globalization**
58
- However, it was in the 1960’s and 1970’s when this term `gained worldwide attention`.
- simply puts it as a `social process of reshaping and remaking the world order`.
- The perspective of the person who defines globalization shapes its definition.
**Globalization**
59
**Forces and drivers of globalization**
* Technology
* Economics
* Politics
* Individuals and Institutions
* Environment
* Culture
60
**Qualities and characteristics of globalization**
**`Creation and Multiplication`** of social networks and cultural activities which break the traditional norms and practices in the political, economic, and cultural realms of most communities
* New social networks and cultural activities emerge, changing traditional norms in politics, economics, and culture.
**`Expansion and Stretching`** of social operations and connections which is seen in the financial markets and trading operations around the globe. (Examples: World Trade Organization, ASEAN Economic Community, World Economic Forum and European Union)
* Global connections grow, especially in trade and finance, as seen in organizations like WTO, ASEAN, and the EU.
**`Intensification and Acceleration`** of human activities which describes the process of world and individual connection works.
* Human interactions and global connections speed up, making the world more interconnected.
**`Consciousness and Awareness`**. People, as the primary actors of globalization are the front liners as reflected in their experiences. The human consciousness is critical on how they impact the growing outcomes and markets of globalization.
* People play a key role in globalization, shaping its impact through their experiences and decisions.
61
**Is Globalization the same as Westernization?**
**NO**. The concept of Westernization is deeply rooted in the Western World where often associated with the Western culture and values (Sairin, 2011). This concept is famously used in referring the western value system and it influences countries outside its territory and sovereignty. The political, economic, and technological prowess of United States and European countries are best described in the idea of Westernization.
**`Westernization`** is when non-Western countries adopt Western ways.
**`Globalization`** is when the whole world becomes more connected and influences each other.
62
**Three Sociological Perspective Used in Explaining Globalization**
* Realism
* Liberalism
* Idealism
63
* The realist perspective explaining globalization focuses on the `shifting distribution of power` among states (Walt, 1998 and Synder, 2004).
* They explained that the core idea of dominating the world through the `employment of power`.
* However, realists warn that countries may suffer, and struggle to maintain its power it will be overreached and used wrongly.
**Realism**
64
*** Realists argue that countries open their economies to the world is because of two contending reasons:**
1. `Financial returns` of expanding markets offer new economic opportunities to the capitalist (origin country). (Examples: McDonald’s, Chevron, Ford, Coca-Cola, Citibank, Microsoft, and H&M)
2. The `continued centrality of political power and military strength` are obvious forces of interdependence and realistic behavior of the more and most powerful countries.
3. Realists see `economic alliance and corporation` as medium of flourishing activities under favorable security conditions. Economies tend to forge partnership if they see advantages from other countries. In some cases, political-military alliances are sometimes used especially within the bipolar world where economic power is utilized to strengthen military capability.
65
* is a perspective in international relations where `actors and institutions emphasize relationships, and negotiations`.
* observe the importance of interaction and communication and focus on `solving problems and conflicts affecting them`
* This idea is very evident in countries where `democratic governance and institutions **play major roles**` in maintaining national cohesiveness in managing domestic and international affairs.
* Liberalists believe that to avoid international conflict and problems, and negotiations and dialogues are potential mechanisms in confronting issues among parties.
* **Three Factors that describe the Transformation of Political-Economic
Structure and Development of Global Interconnectedness:**
o Spread of Democracy and Institutions
o Global Economic Ties
o International Organizations
**Liberalism**
66
*** Three Factors that describe the `Transformation of Political-Economic Structure` and Development of Global Interconnectedness:**
o Spread of Democracy and Institutions
o Global Economic Ties
o International Organizations
67
* and constructivist hold the notion that `values, and norms play pivotal roles in sustaining and reforming the process and works of individuals, group, and nations`.
* **`Alexander Wendt`** and **`Hugh Ruggie`** are the two most prominent founders of this school of thought.
* presents the changing norms and evolutions of individuals, groups, and states with the goal of influencing the dynamics and pattern of social structure.
* Furthermore, they value the importance of “**appropriateness**” and “**transparency**” in reshaping and framing rules affecting the general welfare of its members, may it be individual or collective. Idealists emphasize appropriate policies and decisions during the state of conflict as it advances the moral aspects and ethical dynamics of actions.
**Idealism**
68
are `non-material entities of culture`; it embodies one’s perception of his social world or environment. It defines on `how values`, norms, and beliefs are `used by governments and institutions` in hold and exercising of power (Nau, 2008).
* **Three Important Technological Trends that made Significant Changes in the Interaction of Nations and People:**
1. Knowledge and technology are significant determinants of wealth and power.
2. The fast pace of technological change
3. Dispersed knowledge and technology.
**Ideas**
69
*** Three Important Technological Trends that made Significant Changes in the Interaction of Nations and People:**
1. Knowledge and technology are significant determinants of wealth and power.
2. The fast pace of technological change
3. Dispersed knowledge and technology.
70
as a `product of technological advancement` have rendered national borders irrelevant in international system. Discoveries and changes in science and technology make markets around the world a borderless contact, making the global economic structure more intertwined.
**Innovation**
71
consist norms, set of activities, and regulate structures that `provide meaning and stability to the social behavior of a group (Peter, 2012)`.
Norms like the rules, guidelines, programs, and the types of activities constitute the operation of an institution. They are understood as structures that are parts of a society.
**Institutions**
72
`Meyer and Rowan (1977)` describe the ___________ as a symbolic manifestation on the needs of society. The actions and behavior of the group members can change and alter the movement of community and its people.
A different view explained by Giddens (1979), states that institutions will not be recognized as institutions if they do not shape the behavior of individuals.
**formation of institution**
73
is directed by two important institutions: `political and economic institutions`.
**Global governance**
74
are classified `intergovernmental organizations` that are formed by national governments. These are international formal organizations that set rules and with the purpose of regulating the flow of communication and movement of resources.
**International institutions**
75
o Development of international networks
o Beginning of `international fairs`
o International relations through treaties and agreements in Europe
o Establishment of `International Committee of the Red Cross in 1863`
o Significant development in communication and transportation
o Development of international competitions
o `First World War`
*** First Phase (Mid 18th Century – 1870s)**
76
o Establishment of `League of Nations`
o Global effect of `Cold War`
o Rise of `Third World Countries` in international arena
o Increased attention to `humanitarian works` and development aid
o Introduction of global icons and `American consumerism`
*** Second Phase (1920s – 1960s)**
77
o Establishment of `global communication`
o `Increasing power and influence` of international financial institutions
o `Rapid rise of US` and expansion of western investments and multinational firms
o **`End of Cold War`**
o Increase in social movement and global civil society
o Introduction of `World Wide Web` and continuous influence of telecommunications
o Rise of global attention to environmental concern and anti-globalization
*** Third Phase (1960s – Present)**
78
For a better grasp on the historical developments of globalization,___________ described the phases of globalization into three periods.
**Thomas Friedman**
79
* Period of `Mercantilism`
* Age of `Industrialization` (rise of British Economy)
* Inventions:
o Steam engine
o Printing press
o Railway system
* Development of `Social Systems and Institutions`:
o Government
o Education
o Exchange of goods within the region
**Globalization 1.0 (1492 – 1800)**
80
* `End of World War II`
* Age of `Pax Brittannica` --- was a period of relative peace in the world from 1815 to 1914. The phrase is Latin for "**British peace**".
* Formation of `Market Integratio`n and Institutionalizations of major economic activities in global market
**Globalization 2.0 (1800 – 1950)**
81
* Period of Technology and Internet
* Age of Information
* Intensification of `trade worldwide` and development of Multinational corporations
* New players and prominent economic actors:
o China
o ASEAN
o European Union
o Japan
o South Korea
**Globalization 3.0 (1950 – 2000)**
82
**World War II Alliances**
**Axis Powers**
* Germany
* Italy
* Japan
**Allied Powers**
* Great Britain
* France
* Russia
* U.S.
`In time, countries from around the globe joined in the fight, but some remained neutral.`
83
he described the globalization as `intensification of worldwide social relations`. The global economic activity is the most obvious face of this phenomenon where economic activities have immense effect to other global operations such as governments, education, and technology.
**Anthony Giddens**
84
**Three dimensions of globalization**
* World Military
* Nation-state System
* World Capitalist Economy
85
* `Strengthening military power` is the priority of the first world countries as well as the developing and third world countries.
* Budget allotted by governments to defense and military surged hundred folds with the aim of delivering world-class defense operation and services to its people.
* US maintains the rank as the world's most powerful military in terms of military spending (SIPRI, 2017).
**World Military**
86
* `Sovereignty` of states has been emphasized as a primary part of `independence and autonomy`.
* The concept of `sovereignty` in a globalized world is understood as the best form of asserting the existence and operation of a state in order to be recognized.
* It has been used as a `major political unit in international relations`.
* Nation-states have the `right to make their own collective objectives`.
**Nation-state System**
87
* `Primary force of globalization`.
* **Capitalist states** are the `main engines of global production` and distribution of goods and services.
* Capitalists `engage in transnational operation` maintaining pool of resources such as labor and capital.
* **Multinational corporations** are `very powerful in controlling domestic and foreign market.`
**World Capitalist Economy**
88
**There were number of interpretations on the origin of Cold**
1. The conflict was cause by aggressive behavior and domestic policies of Soviet Union prompting other countries especially the US to react.
2. The cold war was a result of the US economic system of expansionist-capitalism.
3. The war was a consequence of security response from the two countries on the power vacuum and threat of central Europe.
89
**During Cold War**
**First World**
* United States
* United Kingdom
* Japan
* Western
* European Countries
**Second World**
* Soviet Union
* China
* Estonia
* Lithuania
* Half of Germany
* Vietnam
* North Korea
* Cuba
**Third World**
* Neutral and non-aligned Countries
90
`Powerful economies` having stable governments, robust financial markets, and `advanced and modern infrastructures`, low poverty, and `high standard of living`.
**First World**
91
The idea of world order is associated with the role of `political and military power` during the Cold War. The communist countries of the Second World are found to be trapped `between poverty and prosperity`.
**Second World**
92
Countries are described as `less developed and developing economies` or global south. Most of the countries have experienced `colonialism` from the Western World.
**Third World**
93
The formation of the UN was pivotal in the recognition of _____________ and NGOs. This era was marked by participation of NGOs in the decision-making of the UN. They not only helped to usher in understanding relationships with private sectors, but these civic organizations were also influencing UN in adopting its ECOSOC.
**civil society organizations**
94
have diverse influences and roles in globalization. Their operations are very evident across industries such as commerce and trade, media and press, human rights, environmental groups, migration and labor. These groups are typically described as civil society, active for groups and individuals that are relatively independent of governmental interference. GCS is a global and international network of NGOs with the purpose of influencing governments and organizations in various issues and concerns. It is usually identified as grassroots attempts to seek and resist change.
**NGOs**
95
**Characteristics of NGOs**
* An NGO must be entirely independent from the control of any government. It should have its own authority and jurisdiction over its operations and decisions. They design their own programs and activities and maintain their networks without interference from the government.
* NGOs are not considered as political parties. They participate in political issues like human rights and environmental pollution, but they are not classified as an organization that is part of the bureaucratic operation of the state.
* NGOs perform their tasks not because of generating income or profit. They are described as non-profit and not-for-profit organizations or entities. The existence and operating costs of NGOs rely on the members' contribution and proactive sponsorship from the private sector and entities that have interest in their causes.
96
**Roles of Civil Society Organizations
`The World Economic Forum (WEF) outlined the following roles of NGOs and CSOs:`**
1. watchdog
2. advocate
3. service provider
4. expert
5. capacity builder
6. incubator
7. representative
8. citizensip champion
9. sodality supporter
10. definer of standards
97
: CSOs monitor the behavior of institutions in the promotion of transparency and accountability.
**Watchdog**
98
: They initiate programs that raise public awareness of issues and challenges, advocating for change.
**Advocate**
99
: These organizations are active in delivering services to meet societal needs including food and security, health education, and disaster management.
**Service Provider**
100
: They bring unique knowledge and expertise to evaluate policy and strategy and identify solutions.
**Expert**
101
: Civil society provides services providing relevant training, education, and capacity building to communities.
**Capacity Builder**
102
: CSOs act as an armory in developing solutions that require long playbook periods.
**Incubator**
103
: They give power in emphasizing rights for marginalized and voices of under-represented.
**Representative**
104
: CSOs are known in encouraging citizen engagement and championing the rights of the minority.
**Citizenship Champion**
105
: They promote ethical standards, and human practices as part of promoting universal values geared towards sustainability and balance of life in the society.
**Sodality Supporter**
106
: CSOs create and define norms that shape and make active the rights of the people and societies.
**Definer of Standards**
107
are international not-for-profit organizations that are independent and are not controlled by governments. TNGOs operate as an extension of the private life of the state transcending from domestic to international affairs. TNGOs are seen very active in domestic affairs in countries under democracy. Democratic states do not only recognize the operation of NGOs but promote as well its involvement in the acceleration and delivery of its services.
**Transnational Nongovernmental Organizations (TNGOs)**
108
are considered as vanguard against the abuses of capitalists and organizations that negatively affect the environment. NGOs usually lobby to influence decision-makers, international organizations, and governments. They undertake serious actions like research fundraising, publicly and challenging policies and legislatures that are detrimental to the ecology and environment.
**Environmental Nongovernmental Organizations(NGOs)**
109
**Environmental Nongovernmental Organizations** example
Greenpeace and World Wildlife Fund (WWF) are the most prominent Environmental NGOs. Activities and engagements of these organizations are described as assertive and influential. They operate in almost all countries, especially those that have environmental concerns. Greenpeace is known for advocacy work on issues concerning toxic products, and forest restoration, whereas WWF on the other hand is the world’s largest multinational conservation organization.
110
The adoption of UN Universal Declaration of Human Rights in 1948, which centers on the promotion of political participation and freedom, entitlements and access to adequate food, shelter, clothing, and health care, provided a more pronounced obligation of the state to its citizens. This adoption was followed by the resurgence of other bodies and conventions such as women’s and children’s rights, discrimination and abuse. Under the UN’s management, the organization has the right to act on issues concerning human rights violations.
**Law and Human Rights Nongovernmental Organizations**
111
**Law and Human Rights Nongovernmental Organizations** example
Amnesty International (AI) is one of the world's most famous and active human rights NGOs operating in different countries worldwide. AI maintains its global prestige and integrity of not accepting money and donations from governments and political organizations/parties. It is known in focusing advocates and causes on judicial and justice system reform, abolition of death penalty, protecting the rights of migrants and refugees as well as protection to human rights defenders, and promoting the rights of marginalized communities and indigenous peoples.
112
* is described as a process, system, procedure. It is a state or condition of changing and enhancing something.
* Oxford defines it as "a process and an event constituting a new stage in a changing situation."
* This process requires a number of factors and actions in developing a part of a system or consistent elements.
* is a complex and multidimensional concept occurring in an unarticulated condition.
Belli (2011) stresses the development of the other structures of the system could be examined in relation to one another and the structural and functional systems of globalization. Countries that lack resources are at the bottom of the phenomenon where benefits are perceived to be disproportionately shared. CSOs describe this situation as maldevelopment, a condition where developing and least developed countries suffer on the downside effects of development and changes.
**development**
113
**Four Dimensions of Development**
The Food and Agricultural Organization (FAO) of the UN has enumerated the four dimensions and prevailing paradigms of development.
1. Economic Development
2. Human Development
3. Sustainable Development
4. Territorial Development
114
It is focused on the qualitative aspect of change that sometimes people failed to define, like increased quality of life, social improvements and innovations.
**Economic Development**
115
UN's Three Dimensions of Development:
- Long and healthy life
- Knowledge
- Decent standard of living Life expectancy at birth
Expected and mean years of schooling
Gross National Income (GNI)
- Long and healthy life
- Knowledge
- Decent standard of living Life expectancy at birth
Expected and mean years of schooling
Gross National Income (GNI)
**Human Development**
116
It is the "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland Commission)
**Sustainable Development**
117
It focuses on the relationships of human activities between urban and rural areas (Belli, 2011).
**Territorial Development**
118
were established as part of the success of the Millennium Development Goals of 2015. In the next 15 years, member countries of UN, rich and poor, developing or developing are expected to mobilize all efforts to end the global problem of poverty, solve inequality, and address impacts of climate change.
**Sustainable Development Goals (SDGs)**
119
**7 Sustainable Development Goals**
1. **No Poverty**. End poverty in all its forms everywhere.
1. **Zero Hunger**. End hunger, achieve food security, and improved nutrition and promote sustainable agriculture.
1. **Good Health and Well-being**. Ensure healthy lives and promote well-being for all at all ages.
1. **Quality Education**. Ensure inclusive and equitable quality education.
1. **Gender Equality**. Achieve gender equality and empower all women.
1. **Clean Water and Sanitation**. Ensure availability and sustainable management of water and sanitation for all.
1. **Affordable and Clean Energy**. Ensure access to affordable, reliable, sustainable, and modern energy for all.
1. **Decent Work and Economic Growth**. Promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all.
1. **Industry, Innovation and Infrastructure**. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
1. **Reduced Inequality**. Reduce inequality within and among countries.
1. **Sustainable Cities and Communities**. Make cities and human settlements inclusive, safe, resilient, and sustainable.
1. **Responsible Consumption and Production**. Ensure sustainable consumption and production patterns.
1. **Climate Action**. Take urgent action to combat climate change and its impacts.
1. **Life Below Water**. Conserve and sustainably use the oceans, seas, and marine resources for sustainable development.
1. **Life on Land**. Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
1. **Peace and Justice Strong Institutions**. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
1. **Partnerships to achieve the Goal**. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.
120
* is widely used in social sciences like sociology, political science, and economics. I
* t is a major subject of discourses especially relating to globalization, global divide, and development across the world.
**global south**
121
as a geographical condition described as largely equivalent, but related to Third World (Pagel, Ranke et al. 2014)
**global south**
122
* the term _________ does not refer exclusively to countries outside `United States and Europe, Australia and New Zealand,` but to the entire "South."
* It refers to countries that are excluded from global interaction and globalization.
**south**
123
contemporary issue in socioeconomic and political divide.
**global south**
124
Countries like the United States, Canada, and western part of `Europe, Japan, Australia, and New Zealand` are giant economies parts of the __________. These countries are described as highly industrialized, developed, and most advanced economies in the world. It rests on the fact that the entire world's industrially developed countries lie to the north of the developing countries.
**global north**
125
Countries which belong to the _______ possess various political and economic descriptions and experiences. In Africa, d`ebt, poor infrastructure, education, employment, health care, and peace and security `are key impediments. The region's problem on poverty is the fundamental challenge of governments and institutions providing key to these countries.
**global south**
126
are tend to be a combination of emerging and developing economies with the exception of Singapore. Domestic and regional problems like unstable governments, rule of law and environmental pollution are continuously at the forefront of concerns in the region.
**Asian countries**
127
on the other hand consists of countries that have experienced transitioning governments. There are former territories of the Soviet Union and stabilizing the economy brought by the damage from the former communist Soviet regime is still evident. Political and economic unrest is a hindrance to address the fabric of communism during the Cold War era.
**Central Asia**
128
region has its unique social struggle. The region is confined in a costly conflict involving territorial insecurity, peace and order, and competing ethnic and biological classes. Though the region is an oil-rich country but regional issue are barriers in the development process of West Asia.
**West Asian**
129
Countries belonging to __________ are trapped in turbulent economic problems. Regional matters like unstable democratic governance and fiscal problems are now challenging facing countries of the region. Latin American countries are described as countries that have experienced "lost development" because of missed economic opportunities especially in the 60s and 70s.
**Latin America**
130
**Globalization in the 1990**
The economic intensification observed in the 90s fueled countries to establish their competitiveness that can not keep the demands of the market. Underdeveloped countries suffer most of the negative impacts of globalization. Countries of the global south experienced unstable governments and weak economies failed to produce outputs as a response to the internationalization system of economy and government. There were countries that disappear from the pipelines of the global competition. Some countries mostly third world shifted its interest through relying to a more powerful economy.
131
**Uneven Immigration**
The pattern of migration in the last three decades saw an unprecedented rise of migrant workers and citizens seeking greener opportunities in other countries. People from Asia targeted Western Europe and America as ideal point of employment. Developed countries that are on the height of technological development, advancement, and high quality of social services became the main venues accepting migrants. This trend continues to happen in the current times where in most countries of the global south found this opportunity as an alternative to the absence of jobs available in the local economy.
132
**The hegemonic nature if international economic relations**
The global problem of poverty and inequality are outcomes of the evil practices of western countries. These problems are associated with the abuse of capitalists who control most of the world’s wealth. International institutions that have the power and resources are very silent and unresponsive in this problems experiencing countries in the global south. Countries in the global south are trapped in the hands of developed countries where rising financial obligations like loan programs are continuously punishing economies of the south.
