CONWORLD-MIDTERMS

STRUCTURES OF GLOBALIZATION Great Depression in the 1930, and

1. GLOBAL ECONOMY World War II. Because of the fear of the
2. MARKET INTEGRATION recurrence of lack of cooperation among
3. GLOBAL INTERSTATES SYSTEM nation-states, political instability, and
4. CONTEMPORARY GLOBAL economic turmoil (especially after the
GLOBAL ECONOMY Second World War), reduction of barriers to
 exchange of goods and services trade and free flow of money among nations
integrated into a huge single global market. became the focus to restructure the world
It is virtually a world without borders, economy and ensure global financial stability
inhabited by marketing individuals
and/or companies who have joined the The Bretton Woods Conference  known
geographical world with the intent of as the United Nations Monetary and
conducting research and development Financial Conference, was a gathering of
and making sales. delegates from 44 nations that met from July
• It is the economy of all humans of the 1 to 22, 1944 in Bretton Woods, New
world, considered as the international Hampshire, to agree upon a series of new
exchange of goods and services that is rules for the post-WWII international
expressed in monetary units of account. monetary system.
• the sum of activities that take place both
within a country and between different To represent the Philippines in the UNs
countries. Each country is a separate unit, Monetary and Financial Conference in
with its own industrial production, labor Bretton Woods, N. H., July 1, President
market, financial market, resources and Manuel L. Quezon appointed as
environment. delegates Hon. Andres Soriano, Hon. Jaime
• It is all the economies of the world Hernandez, Mr. Joseph A. Foley. Mr. Ismael
(the economy of every country) which Mathay. (PH OFFICIAL GAZETTE)
we consider together as one economic
system. the Bretton Woods system has key
elements.
happen if the global economy were to
collapse 1.expression of currency in terms of gold or
gold value to establish a par value
1.GREAT DEPRESSION  worst economic
downturn in the history of the industrialized 2. “the official monetary authority in each
world- lasted from 1929 to 1939. country (a central bank or its equivalent)
would agree to exchange its own currency
depression - sustained, a long-term for those of other countries at the
downturn in economic activity in one or more established exchange rates, plus or minus a
economies. Considered by some economists, one-percent margin"
a rare, and extreme form of recession
3.the establishment of an overseer for these
Causes of Depression • Over Production // exchange rates; thus, the International
• High demand and prices during WWI // Monetary Fund (IMF) was founded.
Demand and prices fall after war // • Uneven
distribution of income – Rich got richer and 4.U.S dollar became the global currency
poor got poorer
The Bretton Woods system
World War II was an international monetary agreement
 global war that lasted from 1939 to that standardized currency exchange rates.
1945.  It aimed to bring uniformity to global
 worsen the Great Depression exchange rates

The Bretton Woods System

The major economies in the world had
suffered because of World War I, the
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Organization (WTO)

global trade and finance was greatly

affected by the Bretton Woods system.
One of the systems born out of Bretton
Woods was the (GATT) that was established
in 1947

IMF & the World Bank were founded after GATT  forum for the meeting of
the World War II. representatives from 23 member countries.
were COMPLEMENT to each other focused on trade goods through
Their establishment was mainly because of multinational trade agreements conducted in
peace advocacy after the war. These many rounds of negotiation.
institutions aimed to help the economic
stability of the world. WTO headquarters  located in Geneva,
Switzerland with 152 member states as of
Both of them are basically banks, but 2008
instead of being started by individuals like
regular banks, they were started by WTO  independent multilateral
countries. Most of the world’s countries were organization that became responsible
members of the two institutions for trade in services, non-tarriff- related
barriers to trade, and other broader
IMF’s main goal: to help countries which areas of trade liberalization
were in trouble at that time and who could 2. MARKET INTEGRATION
not obtain money by any means.
International Monetary Fund served as Market Integration - situation in which
a lender or a last resort. separate markets for the same product
become one single market, for example
World Bank promotes long-term economic when an import tax in one of the markets is
development and poverty reduction by removed
providing technical and financial
support to help countries implement Integration - to combine separate national
reforms or projects, such as building schools, economies into larger economic regions
providing water and electricity, fighting Free Trade  international trade (the
disease, and protecting the environment. importation and exportation) left to its
natural course without tariffs and non-tariff
Another feature of the concept was its use trade barriers such as quotas, embargoes,
of capital flows to developing countries sanctions or other restrictions.
as a
means of Tariffs - taxes or duties to be paid on a
particular class of imports or exports

Embargo - a government-instituted
prevention of exports to a certain country.
Official ban on trade or other commercial
activity. (The United States has imposed
narrowing the income gap between rich several long-running embargoes on other
and poor countries. The bank has countries including Cuba, North Korea, and
expanded its lending activities and, with its Iran.
numerous research and policy divisions, has
developed into a powerful and authoritative Economic sanctions - commercial and
intergovernmental body. financial penalties applied by one or more
countries against a targeted country, group,
The General Agreement on Tariffs and or individual
Trade (GATT) & World Trade
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Free Trade Areas international trade and capital flows,
 a group of countries within which tariffs transnational corporations that produce
and non-tariff trade barriers between the products on several continents, as well as all
members are generally abolished but with the economic transactions that occur within
no common trade policy toward non- countries and at local levels.
members.
sense of geography and price, is the The whole world-system is more than just
foundation of these trading agreements. international relations. It is the whole system
 impose exclusivity among its members of human interactions. The world economy is
since the world is not entirely a free trade now all the economic interactions of all the
economy people on Earth, not just international trade
and investment
WORLD’S MAJOR FREE TRADE AREAS
The modern world-system is structured
1.North American Free Trade politically as an interstate system – a
Agreement (NAFTA) system of competing and allying states.
trade pact between the United States,
Mexico, and Canada Political Scientists commonly call this the
helps in developing and expanding world international system, and it is the focus of
trade by broadening international the field of International Relations
cooperation.
The world is composed of many states
Not Free Trade Areas yet Union and having different forms of government. It
Partnership Agreements has been one of the major subjects of
5. European Union scholars of political disciplines because it is
6. Trans-Pacific Partnership viewed as the institution that sets policies for
7. Transatlantic Trade and Investment the country.
Partnership
Organization for Economic Cooperation Effects of Globalization to Governments
and Development (OECD)
 most encompassing club of the richest key aspects of state sovereignty is the
countries in the world government. It’s group of people who have
highly influential, despite the group having the ultimate authority to act on behalf of a
little formal power state.

Organization of Petroleum Exporting Each state has its own right to self-
Countries  originally comprised of Saudi determination and that other country should
Arabia, lraq, Kuwait, Iran, and Venezuela not intervene in the affairs of that state
was formed because member countries unless there are extraordinary reasons to do
wanted to increase the price of oil, which so.
in the past had a relatively low price & had
failed in keeping up with inflation 1st: globalization is seen to impose a
forced choice upon nation-states. - in
European Union (EU)  economic and this contemporary age, are forced to submit
political union of countries. It operates an themselves to the demands of globally
internal (or single) market which allows accepted free market principles.
movement of goods, capital, services and
people between member states 2nd: establishment of economic and
political integrations.  The statehood of
III. GLOBAL INTERSTATES SYSTEM the members is not dissolved, what has
changed is only how the nation-states
Only the modern world system has become a function, in terms of economy and politics, as
global (Earth-wide) system composed of part of a whole
national societies and their states. It is a
single global economy composed of 3rd: effect of globalization is the
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establishment of international laws and NATO membership is open to European
principles. states that can contribute to the security of
the North Atlantic
4th: effect is the rise of transnational 2.Global Economic Associations: The
activism (TNA). Such happens when WTO and NAFTA
activist groups of nation states connect with
their counterparts in other states The next group is an economic association:
Institutions that Govern International
Relations -  aim: to foster strong WTO  created with the goal of increasing
economic, political, cultural, educational, and free trade. Countries, therefore, can buy and
technical intergovernmental relationships. sell goods from one another without placing
There are also nongovernmental takes on imports or tariffs. In addition, tariffs
organizations promoting social and are used to protect businesses and
economic growth companies inside their country.

1.Peace Treaties and Military Alliances: North American Free Trade Agreement
The UN and NATO (NAFTA)
Global politics entails relationship of  economic treaty between the United
countries and different governments and States, Canada, and Mexico in which the
non- governmental organizations three countries trade freely without taxing
 United Nations (UN)  leading political each other
organizations in the world where nation-
states meet and deliberate. However, it Some American autoworkers protested
remains as an independent actor in global against NAFTA as several car companies
politics. Generally, it functions in four areas: moved their factories to Mexico in search for
military issues, economic issues, cheaper labor. NAFTA, like WTO, represents
environmental issues, and human the challenge in America of keeping
protection. manufacturing factories.

main objectives of the UN: 3.Association of Southeast Asian

 maintenance of international peace and Nations (ASEAN)
security, the promotion of the well-being of Established in 1967, now has 10 member
the peoples of the world, and international states. aims: accelerate economic growth,
cooperation to these ends. The UN's social progress and cultural development in
Membership has grown from the original 51 the region; promote regional progression;
Member States in 1945 to the current advance peace and sustainability; promote
193 Member States active cooperation

1.North Atlantic Treaty Organization 4. European Union (EU)

(NATO) An IGO (Intergovernmental
military alliance established by the North organization) with 27- state members was
Atlantic Treaty (also called the Washington established in 1993.
Treaty) of April 4, 1949, which sought to Goals: to promote peace, its values, and
create a counterweight to Soviet armies well-being of its citizens; offer freedom,
stationed in central and eastern Europe after security and justice without internal borders;
World War II. uphold sustainable development;
essential and enduring purpose: to
safeguard the freedom and security of all its 5. Non-Governmental Organizations
members by political and military means. (NGOs) Another example of an international
Collective defense is at the heart of the organization that was developed out of war is
Alliance and creates a spirit of solidarity and the Red Cross (Red Crescent in Muslim
cohesion among its members countries).
Finland and Sweden, two long-neutral  NGOs are not tied to any country.
countries, were formally invited to join NATO This allows them to operate freely
in 2022. throughout the world. They provide
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emergency relief such as food, water, and democratic framework of voting on
medical supplies for those whose homes or regulations that apply globally, it provides a
towns have been destroyed by disaster or safety net to prevent or respond to wars and
war. humanitarian crises, and is funded by nations
what exactly does “global governance” which are a part of it. This structure allows
mean? for an array of institutions and services that
provide everything from consulting, advisory,
government  formal body that is solely justice, humanitarian aid, education,
responsible for governance of specific information, and so on. In theory, it could
institutions within a jurisdiction. provide much more, and on a global scale
Governance  rules, institutions, and
officials that have the power to shape the (UN)  closest thing we have to a global
behavior of actors in a system. government. Today, it contains the closest
EX: the enforcement of laws and regulations approximations that the world has to a
as well as the provision of safety and constitution (the Universal Declaration of
services. It should be clear then, that Human Rights); a set of deliberative
achieving governance with a global scale or lawmaking bodies (the General Assembly
impact doesn’t necessitate a single global and Councils); a police system among
government. There is a continuum from nations (the Security Council); and an
negotiation between nations to broad-impact executive branch (the UN bureaucracies
treaties and agreements to trade/customs
unions to political unions. These exist from a The United Nations, with headquarters in
transnational all the way up to a global scale. New York City, is an international
IV. CONTEMPORARY GLOBAL organization founded in 1945. It is currently
GOVERNANCE made up of 193 Member States. The mission
and work of the United Nations are guided by
Global governance the purposes and principles contained in its
- interdisciplinary examination of power and founding Charter.
authority in the global arena and examines
the variety of actors, institutions, ideas, • UN's Chief Administrative Officer is the
rules, and processes that contribute to the Secretary General.
management of global society, exploring • 2020 marks the 75th anniversary of the
their origins, their evolving roles, as well as United Nations
their political, economic, social, 6 Organs of the United Nations (UN)
environmental, and ethical consequences.
 makes world affairs systematic, secured 1. General Assembly  organ where all
and formulaic. member-states have equal representation in
 Weiss & Thakur (2014)  totality of norms, discussion and consideration, and
laws, policies, and bodies that define, policymaking
comprise, and facilitate transnational 2. Security Council  commitment to
relations between citizens, states, cultures, preserve peace and security.
intergovernmental and nongovernmental 3. Economic and Social Council  organ
organizations. for cooperation, policy reviews, policy
Rules and norms put everything in order dialogue, and advice on social, economic and
 is rule-based, it has no central authority. environmental issues.
ROLE OF UNITED NATIONS TO GLOBAL 4. Trusteeship  organ tasked to
GOVERNANCE administer international oversight for 11
trust territories and to make sure that
United Nations (UN) adequate procedures are taken for
 governing body and its institutions independence and self-government.
constitute a framework that allows for 5. International Court of Justice  UN’s
global governance. prime judicial organ.
It fits the definition because it allows for a 6. Secretariat organ to execute the daily
CONWORLD-MIDTERMS
activities as assigned by the other organs. agriculture
3. Ensure healthy lives and promote well-
United Nation being for all at all ages
 carries the functions of delivering 4. Ensure inclusive and equitable quality
humanitarian aid, promoting sustainable education and promote life-long learning
development, and upholding international opportunities for all
law 5. Achieve gender equality and empower all
scrutinizes situations and issues reported women and girls
to them and oversee the exercise of 6. Ensure availability and sustainable
international human rights agreements. management of water and sanitation for all
responsible for coordinating responses to 7. Ensure access to affordable, reliable,
emergencies and supports rapid sustainable, and modern energy for all
humanitarian response for people affected 8. Promote sustained, inclusive and
by natural disasters and armed conflict sustainable economic growth, full and
productive employment and decent work for
The organization utilizes good offices, all
diplomacy, and mediation. It does 9. Build resilient infrastructure, promote
peacekeeping processes in countries with inclusive and sustainable industrialization
domestic conflicts and peace- building tasks and foster innovation.
in countries freed from conflict, lessening the 10. Reduce inequality within and among
risk of reversing into conflict and setting the countries
ground work for sustainable peace and
development Despite the establishment of global norms
and international laws that nation-states
Millennium Development Goals was set should follow, the nation- states are still
to promote sustainable development. relevant for there will be no
2015  changed into Sustainable intergovernmental organization without
Development Goals (SDGs). them. Also, international and multinational
These goals are the blueprint to achieve a agreements are designed by the states and
better and more sustainable future for all. propelled by the initiatives that they
This collection of 17 global goals covers undertake.
social and economic issues including
poverty, hunger, health, education, etc. Contemporary global governance defines
political scope of globalization. Cooperation
Millennium Development Goals MDGs - among nationstates is the only way to reform
improving the lives of the world's poorest and advance the roles and functions of
people. interstate relationships despite real
challenges being faced by United Nations
Eight Millennium Development Goals
1.Eradicate extreme poverty and hunger; LESSON 2: A WORLD OF REGIONS
2.Achieve universal primary education; The global divides; North and South
3.Promote gender equality and empower
women; GLOBAL DIVIDES: THE NORTH AND THE
4.Reduce child mortality; SOUTH
5.Improve maternal health; While globalization is a phenomenon,
6.Combat HIV/AIDS, malaria, and other regionalism is also seen as a political and
diseases; economic phenomenon.
7.Ensure environmental sustainability;
8.Develop a global partnership for The world consists of different regions 
development. to group of countries situated in same
geographic location or amalgamate one
Sustainable Development Goals another to oversee flows arid policy choices.
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and Countries on these regions respond
improved nutrition, and promote sustainable economically and politically to globalization
CONWORLD-MIDTERMS
thereby forming regional associations for the Second World. It is the home of all the G8
common purposes like military defense and (Canada, France, Germany, Italy, Japan,
economic security Russia, USA, U.Kindom)

The world has been divided in different ways. Global North includes the outermost
Because of historical factors, countries have regions of the European Union,
been categorized as first world, second world Australia, New Zealand, and developed
and third world. In recent times, nation members of Asia
states have been identified either as the (4 Asian Tigers - Hongkong, Singapore,
Global North or Global South. Taiwan and South Korea).

Most often they are defined based on their Group of Eight (G-8) - intergovernmental
wealth and development. organization that met periodically to address
NORTH-SOUTH DIVIDE international economic and monetary issues.
The G-8 is now referred to as the G-7
The North-South Divide or Rich-Poor because Russia, one of the original eight,
Divide  socioeconomic and political was suspended from the group in 2014 after
division between the wealthy developed annexing Crimea.
countries known as “the North,” and the
poorer developing countries or “the South.” The North, with one quarter of the world
population, controls four-fifths of the income
Global North and Global South, it was divided earned anywhere in the world. It owned 90%
into 3 world country of the manufacturing industries which are
also located in the countries belonging to the
• “First World” - countries which are North.
aligned with the United States adhering to
capitalism as their economic and political The Global North are developed European,
system. North American, Australian societies. It also
• “Second World” - countries aligned with includes South Africa and Israel
the now-defunct Soviet Union adhering to the
principles of communism. Characteristics of countries belonging
• “Third World” of non-aligned (and to the global north are:
generally poor) nations. - refer to poor ▪ established democracy ▪ wealth ▪
nations in general, but many people are not technological advancement ▪ political
certain of its origin stability ▪ aging population ▪ zero population
growth
With the end of the cold war, the term
second world was not used anymore. Global South includes the countries
belonging to the Third World. These are
Cold War regions outside Europe and North America.
 rivalry between the United States and the Countries that have low-income and often
Soviet Union and their respective allies after politically or culturally marginalized. “The
World War II.  centered on major political use of the phrase Global South marks a shift
and economic propaganda and not from a central focus on development or
necessarily on recourse to weapons. cultural difference toward an emphasis on
George Owell English writer who 1st geopolitical relations of power,”
used this term in 1945 to refer to what he
predicted would be a nuclear stalemate The global South are societies with agrarian
between “two or three monstrous super- economies like Africa, India, China, Latin
states, each possessed of a weapon by America which do not have stable economy
which millions of people can be wiped and politics compared to the global North.
out in a few seconds. These countries experience turmoil, war,
conflict, poverty, anarchy and tyranny
Global North mostly encompasses the
West & the First World, along with many of Global north - associated with first world
CONWORLD-MIDTERMS
countries where powerful countries like the materials for industrialized states. In deeper
Group of Eight. sense, the developing countries
 3rd world countries are now termed as the originally belong to the Global South
Global South still has a chance to become a
developed country.
Brandt line - proposed by Willy Brandt in
1980. It is an imaginary line dividing the
world into 2 regions based on their GDP per GLOBAL RELATIONS IN LATIN AMERICA
capita. Latin America, like Africa, has small
populations but endowed with rich natural
resources. Because of this, this region is
target for grand-scale pillage for capital
accumulation by Europe and the United
States. Countries in Latin America were
under the control of either Spain or
Portugal during the Colonial Era.

1st wave of globalization - military

The map shows that generally rich countries wave that happened around 15 to 16"
are found in the northern hemisphere and centuries. Extracontinental military invasion
poor countries are in the southern of the Americas was immediately felt. There
hemisphere with the exception of Australia were political and cultural annihilation of the
and New Zealand. indigenous people. The first wave was
extremely brutal.
this theory is no longer considered as valid
since in today’s context some of the world’s 2nd wave of globalization - economic
strongest economies lie below the Brandt wave.
line The Spanish and Portuguese colonies were
GLOBAL SOUTH VS THE THIRD WORLD well established this time in the 90th
century. Latin America was the basic source
Global South - first used in 1969 in a of raw materials by the European countries.
contemporary political sense and continued During this time, the globalization
to gain appeal throughout the second half of- development was mainly related to the
the 20th centuries requirements of the European industrial
revolution. Natural resources in this period
Alfred SauvyFrench demographer, were exploited and workers were abused.
anthropologist & economic historian who However, infectious diseases were reduced,
coined the term “the Third World” in 1952, communication, and transportation were
comparing it with Third Estate, a concept developed.
that emerged during the French Revolution
which refers to the French population  third globalization wave - Cultural
wave.
The term was accepted because it clearly Due to the nature of technological changes,
differentiated the poor countries from the globalization affects the cultural sphere of
First World where countries are wealthy, and Latin America. Computers and
to Second World (Communist states) though telecommunications were now made
not so wealthy but characterized by greater available and air travel has become
order, higher incomes, and longer widespread. The flow of merchandise and
expectancies (Butler, 2007) trade is easier and accomplishing lots of
things. Women has become increasingly
3rd World countries - experiencing deep important in the workplace.
poverty, inequality, and underdevelopment.
They are the countries at the periphery that A lot of changes were happening.
produce mainly agrarian and mineral raw Communication was becoming better. People
within the region can now communicate with
CONWORLD-MIDTERMS
each other and to other regions of the world.
But new disease was introduced like AIDS or
HIV.

Though the impact of the third wave was

already felt during the 20" century, the
impact of the second wave was still felt and
very much alive. Both waves in the last
decade was simultaneously experienced
affecting many countries around the world.
The better effects brought by the third wave
were often outweighed by its negative
impacts.

A lot of raw materials were produced and

exported outside the region resulting to
higher income to the detriment of the
environment.

Native trees or crops were replaced by

other plants highly demanded by the
importing countries resulting to soil erosion.
Increased consumption of sea products
promoted Expansion of aquaculture resulting
to reduction the water quality.

Despite of these effects, the national cultures

of Latin America still exist. These are
important assets to regional societies.
However, many individuals and communities
have no political control over their common
destinies.

The weakening of the state capacity and the

increase in access of information might be a
source of opportunity for the individuals and
communities. The tools offered by this new
globalization, according to Anton (1998),
might paved the way for planetary survival
and social renewal.