University of Eastern Philippines

Laoang Campus

The
Contemporary
World with
SARS Education
and HIV/AIDS
Awareness

JENNIFER G. EVARDONE, LPT

Subject Teacher
MODULE 1

Lesson
1.1
UNDERSTANDING GLOBALIZATION

INTRODUCTION
Globalization has been a critical discourse in the international development policy arena. There is
an increasing number of books written about globalization since the end of the 1980s (See Figure 1 below
from Google Books Ngram Viewer, search using the keyword: globalization). There are numerous
definitions of globalization, and one definition tends to focus on the economic side of globalization.

Nevertheless, it is a highly contested concept (Stiglitz and Pike, 2004). People commonly debate
about the economic aspect of globalization, but it is only one aspect of the globalization agenda. Some
authors argue against the hegemony and power imbalance that comes with globalization. While other
authors highlight its positive impact on trade, commerce, and information flow.

In this section, we will unpack the concept of globalization by looking at the current state of
globalization, assessing the different views and definitions of globalization and understanding the
sociocultural and socioeconomic changes that come with it.

LEARNING OUTCOMES

At the end of this lesson, you should be able to:

1. Identify the extent of globalization;

2. Define globalization;

3. Differentiate the competing conceptions of globalization; and

4. Identify the underlying philosophies of the varying definitions of globalization

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 Definition of Terms
• Globalization is a process of expanding various sociocultural and socioecological processes
from national to international and transcultural levels (Al-Rodhan, 2006).

• Global Connected Index (GCI) is a measurement of flows and interconnections of a country

to other global players through exchanges in trade, capital, people, and information (Altman, et
al., 2018).

Extent of Globalization
How connected are we with the world? We start with an activity that asks “How are you connected
with the world?” Most of us might answer that we have family, friends, or relatives living in other countries.
Modern technologies and cheaper air travel made possible this connection and flow of people and
information. But do we measure global connectivity?

One of the recent indicators measurements of global of flows connections and interconnections is
the Global of a Connectedness other Index global (GCI)-a players through exchanges in trade, capital,
people, and country to information (Altman et al., 2018).

Based on the Global Connectedness Index 2018 report (Altman et al., 2018), the world's level of
connectedness in terms of international trade, capital, information, and people is at its peak in 2017. The
report indicates that the Netherlands is the world's most globally connected country, while Europe is the
most highly globally connected continent. Also, economies in Southeast Asia like Cambodia, Malaysia,
Singapore, and Vietnam have exceeded expectations for global connectivity, particularly in trade flow.
However, based on this report, only 20 percent of the global economic output of the countries is exported
from the home countries and only 3 percent of people are living outside the countries they were born in.
This shows that the material and social flows are more within and between countries rather than on a
global level (Altman et al., 2018).

Defining Globalization

What is globalization? There are numerous definitions of globalization in the development

literature. You may refer to articles like that Mir, et al. (2014) for a literature review on the globalization
discourse. Some definitions focus on the world's interconnectivity in terms of processes, events, and
decisions (Albrow & O'Bryne, 2017; Friedman, 2006). While others focused more on economic and
financial integration (Rodrik, 2008; Cline, 2010). Other authors criticized the singular focus on the
economic aspect of globalization, and they contend that globalization's impact transcends to the social
fabric of communities (Cerny, 1995; Jones & Kierzkowski, 2004; and Bairoch & Kozul-Wright, 2005). Also,
Pieterse (2019) highlights the cultural processes involved in the process of globalization.

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 Figure 2
Word cloud of definitions of globalization
(Created in www.wordclouds.com)

A word cloud of the different definitions found in the literature was generated. Keywords in these definitions
include "movement," "integration," "free trade," "capital," and "world" (Figure 2). Other keywords include
"economies," "culture," "products," "process," and "ideas." The definitions stated above and the figure
shows the different dimensions of globalization. Hebron and Stack (2016) noted that most of the definitions
of globalization focus on the economic and trade dimensions of the concept. However, one needs to look
at the sociopolitical and sociocultural aspects of globalization (Steger, 2003; Hebron and Stack, 2016;
Vadlamannati, 2015).

Globalization is seen as the process that focuses on the movement of trade, capital, and ideas.
These definitions emphasize "what is being moved or traded across borders?" and "how it could integrate
diverse economic processes, cultures and worldviews?" One critical characteristic of these flows of goods,
services, and information is the integration of different markets and culture. In these definitions, the
breaking down of territorial boundaries is eminent.

However, some authors argue against just the focus on the linear and spatial dimensions of
globalization. These authors distinguish globalization from deterritorialization and westernization. Scholte
(2005) argues that globalization is not just about going beyond territorial boundaries, but is also about
changes in the temporal connections of people. For instance, news from other parts of the world could be
readily accessible in real-time through mainstream as well as online media. Elden (2005) contends that
globalization is not merely about westernization. Naval voyages and early trade have not been always
from the West. An example is the China and Philippines connections, which could be dated back as far as
the Neolithic period and grew in the 10th century AD (Fox, 1967).

Socioeconomic Changes in Globalization

Scholte (2005) identifies macro-structural changes in a globalized society such as product and
services integration through commodity value chains, emerging institutional arrangements, pluralistic
identity, and growth of supra-territorial relations. Also, he identifies four key shifts in society:

• growth of trans- and supra-territorial connectivity

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 • the shift from capitalism to hyper-capitalism focused on production
• a move from nationalism toward identifying pluralism and hybridity
• from rationalism toward knowledge reflexivity

Factors Driving Globalization

Different sources and factors drove globalization. One of the factors that drive globalization is the
reduction of trade barriers. In 1947, richer countries banded together to reduce taxes on imports or tariffs
under the General Agreement on Tariffs and Trade (GATT), which was later transformed to the World
Trade Organization (WTO) in 1994 (Koopman & Hancock, 2019). Husain (2011) also identified modern
technology developments as a key driver of globalization that facilitated faster communication and access
to data or information. This further promoted the development of an information society (Castells, 2000).

Views about Globalization

If you look at how globalization is defined in the literature and based on your activity above, there
are diverging views about globalization (Stiglitz and Pike, 2004). Some authors highlight the positive
economic impacts of globalization such as on the level of employment and balance of trade (Kriesler and
Nevile, 2016). On the other hand, some highlight the negative impacts of globalization, specifically the
inequity among countries and between the rich and the poor. Vandermoortle (2002), for instance, argues
that though globalization and exponential growth, theoretically, could reduce poverty, it does not benefit
all nations. Sub-Saharan Africa, where almost half of the world's extremely poor population lives (living
below US$1.90/day), has been especially marginalized by globalization (World Bank, 2019). Nevertheless,
Beck (2018) contends the multidimensionality of globalization. These include the economic, political,
cultural, ecological dimensions (Steger, 2017; Beck, 2018). Note that these dimensions will be extensively
discussed in the next section.

ASSESSMENT TASK No. 1

30 points
Prepare a 500-word essay on how you view globalization "My Perspectives on Globalization." The
essay should highlight how you define globalization, what are its contributions to social and economic
development, and what are the limitations of globalization as it is currently implemented. You should back
up your main arguments with references.

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 Lesson INTERROGATING GLOBALIZATION
1.2

INTRODUCTION
Globalization has been responsible for remarkable changes in the 20th century. In understanding
it as a subject, one must examine what kind of changes are created and the underlying processes behind
these changes. Furthermore, the pursuit of globalization operates on several assumptions that need to be
evaluated. As a complex change, it permeates people's daily realities as well as the lives of communities
and countries. A deeper analysis is needed to assess whether the process and impacts of globalization
are consistent with development that is sustainable, just, and equitable for the people and the planet.

LEARNING OUTCOMES
After this lesson, you should be able to:
1. Discuss economic globalization as a complex process responsible for enormous global and local
changes;
2. Explain economic globalization’s accompanying cultural and political globalization;
3. Articulate the assumptions behind globalization; and
4. Critically evaluate the impacts of globalization especially for poor countries.

Definition of Term
Development paradigms - an idea of prescribed path to attain development through
certain set of activities, according to a defined vision (Bellù, 2011)

Economic Globalization, Cultural Globalization, and Political Globalization

Globalization is mainly conceptualized as intensified transference or exchange of things across
existing boundaries (Bartelson, 2000). However, globalization is primarily an economic process, the drive
toward integration of economies throughout the world. This is achieved through trading and financial flows
across countries' borders (IMF, 2000).
Globalization and its accompanying processes point to a paradigm about development
(Pongsapich, 2003). Globalization is built on the belief that development can be achieved through rapid
economic growth, made possible because of economic integration (Cavanagh, Mander & IFG, 2004). As
a growth-oriented model of development, it looks into GDP as indicator of success.
Economic globalization is a complex global process of expanding the market economic system all
throughout the world. The market economy, the economic system that gives freedom to entrepreneurs to
control productive process to pursue profit, is just one kind of economic system designed by human
societies. It is a corporate-driven process of enhanced transnational exchange of products, services,
technologies, and capital, creating an increased interdependence of world economies (Shangquan, 2000).

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

Trading
International trading, or the economic exchanges 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.).
Global trading concerns importation and exportation. The world saw an increase in world trade
from 1971 to 1999, and the biggest increase was seen in the export of manufactured goods. On the other
hand, export of primary commodities such as food and raw materials often produced by poor countries
declined (IMF, 2000).

Capital Movement
There was an increase in the capital flows to poor countries during the 1990s (IMF, 2000). One
manifestation of capital movement is foreign investment. Foreign investment can be categorized as
commercial loans, official flows, or foreign direct investment. Commercial loans are money lent to foreign
businesses or governments, while official flows refer to development aid or money granted by rich
countries to developing nations. Foreign direct investment refers to buying or putting up a firm in a foreign
country or contributing to the enhancement of an existing firm (Levin Institute, n.d.). Transnational
corporations, businesses that operate in more than one country, primarily undertake foreign direct
investment.

Movement of People
People can migrate to other countries in search of better employment opportunities. In the
Philippines, the number of Overseas Filipino Workers during the period April to September 2018 was
estimated at 2.3 million (Philippine Statistics Authority, April 2019).

Cultural Globalization and Political Globalization

Increased interdependence of economies in the world also combines with globalization of culture
and politics.

Cultural Globalization
"The current era of globalization, with its unprecedented acceleration and intensification in the
global flows of capital, labor, and information, is having a homogenizing influence on local culture. While
this phenomenon promotes the integration of societies and has provided millions of people with new
opportunities, it may also bring with it a loss of uniqueness of local culture, which in turn can lead to loss
of identity, exclusion and even conflict."
-UNESCO (n. d)
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Cultural globalization refers to the increasing “contact between people and their cultures-their ideas, their
values, their ways of life" (Kumaravadivelu, 2008, p.33). This significant change is getting deeply
entrenched in contemporary societies. It is also linked to globalization of lifestyles such as music, media,
fashion, food, as well as globalization of knowledge, science, and technology.

Political Globalization
Political globalization is the enlargement of the international political system and its establishments,
where inter-regional dealings, including trade, are managed (Modelski, Devezas and Thomson, 2007:59).
Conventional politics usually happens within national political spheres. In political globalization on
the other hand, political decision-making can transcend the boundaries of nations. When talking of
managing economic and trading matters, security, environment, and other transnational issues, some
institutions come into play such as the World Bank, International Monetary Fund, United Nations, among
others.

Assumptions Behind the Pursuit of Globalization

As a paradigm of development, globalization operates on certain assumptions about a desirable
economy and development. However, these assumptions must be tested in the real world. Some critiques
regarding the unreliability of these assumptions are summarized below:

Assumptions Behind Globalization Critiques to the Assumptions

Rapid economic growth will lead to development Economic growth is only one aspect of
development, other aspirations are:
• achieving both material needs and broader
social objectives;
• social economic justice and equity;
• self-reliance;
• welfare, adequate provision of basic services;
and
• equitable distribution of opportunities, income,
and wealth.
Poor countries will benefit from borrowed funds. Borrowing of poor countries are coupled with
conditions (SAPs), which make countries
compromise spending for social services and
welfare.
Poor countries need to catch up with rich countries It will be difficult for poor countries to catch up
by implementing economic policies toward because they are caught in unequal exchanges
economic integration. and underdevelopment.
Underemployment cannot be understood just by
analyzing one country but by examining it within
the historical and worldwide political-economic
system (Valenzuela, 1978:544).
Removal of tariffs, quota can ease global trading Reduction of tariffs in the Philippines since 1980s
and will lead to economic integration (toward lead to unfair competition of local industries with
prosperity). imports. Industries direly affected by tariff cuts
were paper products, textiles, ceramics, rubber
products, furniture, wood, shoes, and leather

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 Assumptions Behind Globalization Critiques to the Assumptions
goods. One of the industries, down to less than 10
firms from 200 firms in 1970s. reduction of tariffs
led to the death of several domestic industries
(Bello, 2009).
The loss of these local industries also resulted in
massive unemployment.

Institutions and Actors Shaping Economic Globalization

The pursuit of fast-paced international economic transactions as well as movement of people and
knowledge is driven by certain actors, in engagement with many sectors. Globalization is not a random
phenomenon. It is devised by humans, guided by several assumptions about development.
International businesses called transnational corporations are important 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.
The roles of the international financial and trade institutions, responsible mainly for ensuring economic
globalization, are discussed briefly:
Organization Role in Economic Globalization
• 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
World Bank 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, providing subsidies for
foreign export-oriented firms; and
❖ Remove tariffs for imports.
• Provide short-term emergency loans
International Monetary Fund (IMF) • Help bring enormous flow of foreign money
through loans and speculative investment.
• Create rules for global trade and investment
• Aim to reduce tariffs
• Create agreements for member countries
World Trade Organization (WTO) 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). Alternative to Economic Globalization: A
Better World Is Possible Ed. 2. Berrett-Koehler.

The World Bank, IMF, and the WTO aim to make sure that quicker and easier movement of
products, capital, and trading between countries is achieved by implementing international policies,
reforms, and agreements. One objective of global financial and trading institutions is to enforce common
trading and financial flow standards and policies to all countries. Another common goal is to "deregulate"

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firms (deregulation). To deregulate businesses is to reduce the control of government over businesses,
making them more powerful in implementing their visions, goals, and operations.

The Impacts of Globalization

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 as neglect of environment, low wages and unstable employment,
under servicing of consumers, and privatizing common resources.

World Bank, IMF, and Debts

Supporters of globalization carry several assumptions about it. Assumptions need to be scrutinized
against real-life conditions.
Proponents and guardians of globalization, such as the IMF, acknowledge poverty and inequality
existing alongside globalized economies. However, globalization trend must not be halted, but must be
continued by embracing policy changes.
International production is conceived to increase jobs created across countries.
Poor countries need to catch up. But countries in the world are divided according to its role and
power in the global system. A country's poverty or development conditions are heavily influenced by its
position in the world system.

Contrasting Evidence of Positive Effects

• Increased income
• More employment
• Less poverty

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 restructuring in places and
social relations can have disintegrating effects for the development of communities (Katz, 2004). 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.

The Effects of Global Trading on the Philippine Local Economy

Because of enhanced global trading, cheap imported vegetables flood the local market. Local
consumers and businesses find it cheaper to buy imported agricultural products than locally produced

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goods. Local producers are unable to compete with the modern and highly-supported vegetable production
from developed countries such as China, Australia, New Zealand, and the Netherlands.
Advertised to the world as a remedy to all problems, globalization comes short. It has not raised
the poor from poverty. Instead, it has widened the gap between developed and developing countries and
between the wealthy and the disenfranchised. It has hindered democracy and social justice; it has
damaged small communities and displaced farmers from their lands. Additionally, it has sped up the largest
environmental degradation known to mankind. The only groups of people who truly benefited from
globalization are the top officials of the world's largest corporations and the bureaucracies that sustain
them (Cavanagh & Mander, 2004).

Alternatives to Economic Globalization

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
(IMF, 2000).

ASSESSMENT TASK No. 2

Answer the following questions. 5 points each.
1. Is globalization, characterized by a rapid exchange of goods, people, and capital across different
countries, a random or a deliberate phenomenon?
2. Who are the important actors shaping globalization? What are your thoughts?

FEEDBACK
Greetings for you my dearest hardworking students! Wow! Time flies so fast and you have already
finished Module 1 of our subject. In this module, we discussed globalization which all boil down to things
that you have to know in the Introduction of this subject. Look back at the different points of
views/definitions of globalization from different authors. Do you already have the idea of what will be the
course about? If not yet, then we will explore more in the next modules. Just be patient in reading and
understanding the modules, just like how you patiently waited for your special someone to answer yes and
I know you will get far.

SUMMARY
In this lesson, we first identified the extent of globalization. Several indexes measure the extent of
globalization, one of which is the Global Connectedness Index (GCI). This index measures the flow of
trade, capital, information, and people across countries. Based on the 2018 Global Competitiveness
Report (Altman et al., 2018), the level of connectedness is lesser compared to what is perceived by the
public. This report also shows that most of the globally connected countries are developed countries based
in Europe, but countries from Southeast Asia have exceeded expectations for global connectivity.

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 Second, we discussed the diverse, often disparate, and mostly contested definition of globalization.
The disparate conceptualization of globalization is based on the dimensions highlighted. There are
different focuses on globalization such as economic, financial or industrial, political, informational, and
cultural. These differences in definition also extend to the globalization debate. One views globalization as
a positive driver of economic growth, while the other spectrum highlights the criticism against cultural
integration disregarding the diversity and uniqueness of each culture.

Third, we also identified some factors that drove globalization. These include enabling policy
environment that lessens restrictions and flows in trades and goods, infrastructural investments such as
on modernization of transportation systems, and modern telecommunications.

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REFERENCE
Caparroso, C. L, (2022). Modules in The Contemporary World, University of Eastern Philippines Laoang
Campus
Castillo, J. S. 2021. Modules in The Contemporary World, University of Eastern Philippines Laoang
Campus
Botor, N. B. et., al. (2020). A Course Module for The Contemporary World. Rex Book Store, p.1-22.

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