Interrogating Globalization

Definition of Term
Bellù (2011) described development paradigms as "a concept of a predefined path to achieve
development through a certain collection of actions, according to a defined vision."

I. Introduction
The term "globalization" has been widely used to describe aspects of development,
primarily from an economic standpoint; for example, the increasing flow of labor, capital, goods,
and services across borders, and the formation of international production networks as
exemplified by multinational corporations.

Globalization was responsible for significant changes in the twentieth century. To

comprehend it as a subject, it is a kind of change that occurs as well as the underlying processes
that cause these changes. In addition, the pursuit of globalization is based on a number of
assumptions that must be tested. It pervades people's daily lives as well as the lives of
communities and countries as a complicated shift. A more thorough examination is required to
determine whether the globalization process and its consequences are consistent with the
development that is sustainable, just, and equitable for people and the earth.

II. Economic Globalization, Cultural Globalization, and Political Globalization

Globalization is primarily defined as the increased transmission or exchange of goods

beyond existing borders (Bartelson, 2000). Globalization, on the other hand, is essentially an
economic movement that aims to integrate economies all over the world. This is accomplished
through cross-border trade and financial movements (IMF, 2000)

Globalization and the activities that accompany it point to a development paradigm (Pong
Sepich, 2003). Globalization is based on the notion that development can be attained through
rapid economic expansion, which is made feasible by economic integration (Cavanagh, Mander
 & IFG, 2004). As a result of development. GDP is used as a measure of success in this goal-
oriented development approach.

Economic globalization is a multi-dimensional process of extending the market economic

system around the globe. The market economy, which allows entrepreneurs to regulate
production processes in order to maximize profit, is simply one type of economic system devised
by human societies. It is a corporate-led, accelerated global process. The increased
interdependence of world economies is due to the exchange of products, services, technologies,
and capital (Shangquan, 2000).

III. Flows in the Age of Globalization

Global trade, capital flows, and people movement are all important features of globalization
(IMF, 2000)

a. Trading
International trade, or economic exchanges and dealings between countries, is made
possible through international fiscal payments, which are facilitated by commercial banks and
central banks of certain countries (Encyclopedia Britannica, n.d.).

b. Capital Movement
During the 1990s, capital flows to developing nations increased (IMF, 2000). Foreign
investment is one example of capital movement. Commercial loans, official flows, and foreign
direct investment are all types of foreign investment. Official flows relate to development aid or
money given by rich countries to developing countries, whereas commercial loans are money lent
to international firms or governments. Foreign direct investment (FDI) is the purchase or
establishment of a business in a foreign country, or the contribution to the expansion of an
existing business (Levin Institute, n.d.). Foreign direct investment is primarily undertaken by
transnational enterprises or businesses that operate in more than one country.
 c. Movement of People
People can migrate to different nations in pursuit of better jobs. From April to September
2018, the number of Overseas Filipino Workers in the Philippines was expected to reach 2.3
million (Philippine Statistics Authority, April 2019).

IV. Cultural Globalization and Political Globalization

Globalization of culture and politics is combined with the increased interconnectedness of
economies around the world.

a. Cultural Globalization
The term "cultural globalization" refers to the growing "interaction between people and
their cultures, including their beliefs, values, and ways of life" (Kumaravadivelu, 2008, p.33).
This important shift is becoming increasingly ingrained in modern civilizations. It's also linked to
the globalization of lifestyles like music, media, fashion, and food, as well as knowledge, science,
and technology.

b. Political Globalization
Political globalization entails the expansion of the worldwide political system and its
institutions, as well as the management of inter-regional affairs, including trade (Modelski,
Devezas and Thomson, 2007:59)

The characteristics of economic, cultural, and political globalization, particularly the distinct
characteristics of economic integration, world restructuring, globalized ideas, and people
movement, as well as the challenges for a sustainable world.

V. Institutions and Actors Shaping Economic Globalization

Globalization is not a random phenomenon. It is driven by specific actors who engage in numerous
sectors in order to pursue fast-paced international commercial transactions, as well as the movement of
people and knowledge. It is created by people, who are led by a number of assumptions about world
development. Transnational corporations, or international businesses, are major players in globalization.

Other important actors and institutions ensuring globalization are the international
financial and trade institutions, as well as the United Nations agencies and regional
organizations, such as the ASEAN

International financial and trade institutions, as well as United Nations agencies and regional groups
like the ASEAN, are all significant actors and institutions in maintaining globalization. The roles of the
international financial and trade institutions, responsible mainly for ensuring economic globalization, are
discussed briefly:

Table 1. International financial and trade institutions, the World Bank, IMF, and WTO.

Organization Role In Economic Globalization

World Bank ● Facilitate capital investment 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.

International Monetary Fund (IMF) ● Provide short-term emergency loans

● Help bring an 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
Summarized from: Cavanagh. J. Mander, J. & Globalization, I. F. (2004). Alternatives to Economic
 Globalization: A Better World Is Possible Ed. 2. Berrett-Koehler.
The World Bank, IMF, and WTO all work to ensure that countries can move products, capital, and
trade more quickly and easily through enacting international laws, reforms, and agreements. The
enforcement of uniform trade and financial flow regulations and policies by all countries is one of the
goals of global financial and trading institutions. Another common goal is to "deregulate" enterprises
(deregulation), which entails reducing government authority over businesses and giving them more power
in achieving their ideas, goals, and operations.

VI. The Impacts of Globalization

Different groups, such as labor organizations, environmental groups, indigenous peoples,
and even consumer groups, are opposed to economic deregulation. Lessening government control
over businesses has resulted in outcomes such as environmental neglect, low wages, unstable
employment, underserving consumers, and privatization of common resources.

a. World Bank, IMF, and Debts

Many assumptions are held by proponents of globalization. Assumptions must be tested
against real-world scenarios.

Globalization's proponents and defenders, such as the IMF, accept that poverty and
inequality exist alongside the globalized economy. The trend of globalization, on the other hand,
must be sustained by adopting policy reforms.

The goal of international manufacturing is to increase the number of employment created

across borders. Developing countries must catch up. However, countries are categorized into
groups based on their function and strength in the global system. The poverty and development
levels of a country are greatly influenced by its place in the global system.

b. Globalization Have Losers and Gainers

Increased trade may result in a broader range of consumer items available on the market.
International trade, on the other hand, produces a wide range of outcomes. The restructuring of
the economy as a result of the rapid flow of capital across countries has an impact on places and
social interactions. These changes in locales and social relationships have the potential to
 destabilize community development (Katz, 2004). Global exchanges like these result in uneven
development.

Local producers suffer losses as a result of an unequal playing field between them and
overseas producers from industrialized countries.

c. The Effects of Global Trading on the Philippine Local Economy

Cheap imported vegetables overwhelm the local market as a result of increased global trade.
Imported agricultural products are less expensive for local consumers and enterprises than locally
produced items. Local farmers are unable to compete with industrialized countries' contemporary
and well-supported vegetable production, such as China, Australia, New Zealand, and the
Netherlands.

Globalization, which has been promoted around the world as a solution for all problems, has
failed in the past. It has failed to lift the poor out of poverty. Instead, it has expanded the divide
between established and developing countries, as well as between the wealthy and the poor. It has
hampered democracy and social fairness, as well as harmed tiny villages and driven farmers off
their land. It has also hastened the greatest environmental destruction in human history. Only the
top executives of the world's largest firms and the bureaucracies that support them have genuinely
benefited from globalization (Cavanagh & Mander, 2004).

d. Alternatives to Economic Globalization

The roughly six-fold increase in income measured in per capita GDP for the richest 25% of
the world population in the twentieth century can be attributed to globalization. The poor, on the
other hand, did not benefit from this exponential economic boom. The gap between rich and poor
has widened (IMF, 2000)
BIBLIOGRAPHY
Cavanagh, J., Mander, J. & Globalization, I. F. (2004). Alternatives to Economic Globalization:
A Better World Is Possible Ed. 2. Berrett-Koehler.
CDP Background Paper No. 1 ST/ESA/2000/CDP/1 2000 Economic Globalization: Trends,
Risks and Risk Prevention Gao Shangquan. United Nations Development Policy and
Analysis Division Department of Economic and Social Affairs 2 United Nations Plaza,
Room DC2-217.
George Modelski: TessalenoDevezas, William R. Thompson (20 December 2007). Globalization
as Evolutionary Process: Modeling Global Change. Routledge. p.59. ISBN 978-1-135-
97764-1.

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