Contempo UNIT 1-3

• Globalization is not just an economic process, but a complex phenomenon that involves various aspects
• Globalization must be viewed using an interdisciplinary approach that considers multiple theories and perspectives
• Manfred Steger defined globalization as 'the expansion and intensification of social relations and consciousness across world-time and world-space'
• Globality signifies a social condition characterized by global economic, political, cultural, and environmental interconnections that make existing borders and boundaries irrelevant
• Expansion in globalization refers to creating new social networks and multiplying existing connections across traditional boundaries
• Intensification in globalization involves the expansion, stretching, and acceleration of global networks, making connections closely-knit and expanding their reach
• The third quality of globalization includes the intensification and acceleration of social exchanges and activities
• Global imaginary in globalization involves subjective human consciousness, where people feel the world has become smaller and distances have collapsed
• Globalization also refers to people becoming increasingly conscious of social interdependence and the acceleration of social interactions, leading to changes in individual and collective identities
• Steger’s argument is simple: The term globalization should be refer to as a set of social processes that

  are thought to transform our present social condition into one of globality.
• Globalization refers to the increasing pace and scope of

  interconnections crisscrossing the globe. Anthropologist

  Arjun Appadurai has discussed this in terms of five

  specific “scapes” or flows: ethnoscapes, technoscapes,

  ideoscapes, financescapes, and mediascapes.
• Ethnoscape Global flow of people;

  movement of people

  Migrants, asylum

  seekers, exiles,

  tourists
• Technoscapes Global flows of technology

  Hardware

  components, technical

  know-how
• Financescapes Global flows of money

  National stock

  exchanges, commodity

  speculations, bitcoins
• Mediascapes Global flows of information

  Newspapers,

  magazines, satellite

  television channels.

  Websites and the

  images and symbols

  they create and

  provide.
• Ideoscapes Global flows of ideas

  Human rights,

  environmentalism, free

  trade movements,

  anti-terrorism,

  LGBTQ++
• Globalization

  Multidisciplinary

   It represents the many processes

  that allow for the expansion and

  intensification of global

  connections.
• Globalism

   (focus) Economic

   It is the widespread belief among powerful

  people that global integration of economic

  and democracy around the world.
• What is economic globalization?

   It is defined as a historical process representing the result of human innovation

  and technological progress (IMF)

   It is characterized by the increasing integration of economies around the world

  through the movement of goods, services, and capital across borders.

   These changes are the products of people, organizations, institutions, and

  technologies.
• Silk Road

  It is the oldest known ‘international

  trade route. It is a network of pathway in the

  Ancient world that spanned from China to

  what is now the Middle East and to Europe.

  The silk road was international, but

  was not truly ‘global’ because it had no

  ocean routes that could reach the American

  Continent.
• When did full economic globalization began?

  According to historians Dennis O. Flynn and Arturo Giraldez, economic globalization begun

  when

  “All important populated continents began to exchange products

  continuously – both with each other directly and indirectly via other continents

  – and in values sufficient to generate crucial impacts on all trading partners.”
• The establishment of the Galleon Trade in 1571 was the first truly global economic connection
• galleon trade connected Asia and the American continent for the first time in recorded history
• For Filipinos, it is important to note that economic globalization began on the country's shores
• The Galleon Trade was part of the Age of Mercantilism
• From the 16th to the 18th century, European superpowers competed to sell more goods to boost their country's income
• To protect their products and sell more goods cheaply, these regimes:

  • Imposed high tariffs, which are taxes on goods coming in or leaving a country
  • Forbade colonies to trade with other nations
  • Restricted trade routes
  • Subsidized their exports
• d. Mercantilism was thus also a system of global trade but with multiple

  restrictions.
• 2. Trial and Error: The early roots of global exchange system

  In 1867, a more open trade system emerged following the lead of UK, US, and

  other European nations, this new system was the Gold Standard.

  The Gold Standard

  It is a monetary system in which paper money is freely convertible to gold. In

  other words, gold back up the value of money.
• The Great Depression was the worst and longest recession ever experienced by the western world, lasting for 10 years
• A recession is a business cycle contraction when there is a general decline in economic activity, usually due to a widespread drop in spending
• Some economists argue that the Great Depression was caused by the gold standard, which limited the amount of circulating money, reducing demand and consumption
• Governments could only spend money equivalent to gold, severely curtailing their capacity to print money and increase the money supply
• Indirect versions of the gold standard were used until as late as the 1970s, but the world never returned to the gold standard of the early 20th century
• The world economy operates based on what are called fiat currencies – currencies

  that are not backed by precious metals and whose values are determined by their cost

  relative to other currencies.

  This system allows governments to freely and actively manage their economies by

  increasing and decreasing the amount of money in circulation as they see fit.
• Why can’t the government print more money?

  1. To avoid inflation. If there are too much money in circulation, prices will rise

  causing inflation and the money will eventually be devalued.
• Why was the Bretton Woods System created?

  To create a global economic system that would ensure a longer lasting global

  peace following the two (2) world wars.

  Originally, it is designed to prevent another Great Depression and advance the

  economic interests of the US.
• When, where and who are involved on the establishment of the system?

  In was inaugurated on July 1944 at Bretton Woods, New Hampshire, USA (thus

  the name) where forty-three (43) countries took part in the creation of the system.
• 1. Keynesianism – Bretton Woods primary economic thinking.

  This economic thinking was formulated by John Maynard Keynes

  According to Keynes, economic crises occurs when countries when countries don’t actively spend money not the lack of money. When economies slow down, governments have to reinvigorate markets with infusions of capital.

  Global Keynesianism – the active role of governments in managing

  spending.
• Global Exchange Rate System- It is the first system used to control the value of money between different countries. It meant that each country had have to have a monetary policy that kept the exchange rate of its currency within a fixed value – plus or minus 1% - in terms of gold.